Our Approach

We use a bottom-up stock-picking approach to investing. There is no attempt to time the market; we leave that worthy quest to others. Cash levels fluctuate according to our ability to capitalize on worthwhile ideas at advantageous prices. If the market is rich, chances are good we are closing out mature positions and growing cash levels.

The equity selection process is rooted in Graham/Dodd security analysis, but is not completely bound by its tenets. There is no sector-specific weighting and we do at time over- and underweight sectors. These weightings are based on themes we see playing out in both the economic and geopolitical arenas.

Initial positions are 3% of the portfolio, so in theory we are fully invested with about 30 names, giving us good diversification. Positions can and will often be held for a number of years.