Sell Discipline

The investment team establishes a sell target when a security is purchased, based on the determined intrinsic value for the firm.  As fundamentals change over time, we continually re-evaluate the sell target.  The investment team conducts a sale review on a company if:

•  The price approaches its sell target
•  The price declines 15% from the peak
•  The security underperforms by 15% relative to the overall market and/or its industry

Our sale review process helps mitigate the risk of falling into a value trap and helps remove emotions from the security analysis process.  The investment team ultimately sells a company if we believe:

•  The value potential is realized
•  Warning signs emerge of beginning fundamental deterioration
•  Valuation is no longer compelling relative to the alternatives