Among the various labels that are used to describe investment managers, “having high conviction” is one that we embrace. We believe investing is about knowledge and interpretation, and the term suggests that clients are receiving a good value for their active fees. Our decisions regarding purchase, sale, and portfolio weighting of individual companies within our portfolios are directly correlated to our assessment of these variables:
- The size of the discount.
- The potential for intrinsic value growth.
- Identification of and confidence in a variant view.
- Identification of a meaningful catalyst.
- A positive impact on portfolio diversification.