Philosophy & Approach
Long-term orientation
We focus on the U.S. public markets and believe that disciplined, long-term ownership of high-quality businesses—evaluated within their macroeconomic and industry context—can deliver attractive long-term outcomes.
Fundamentals-based research
Our process is grounded in fundamentals: value, growth prospects, moat durability, stewardship & incentives. We review filings (10-K/10-Q/8-K, proxies, transcripts), assess incentive alignment, and track leverage, free-cash-flow conversion, ROIC, margins, buybacks, and competitive position.
Proprietary research tools
We built internal portfolio software that provides a panoramic view from economy → sector → industry → company. It supports dynamic screening, thesis tracking, and ongoing portfolio alignment across 80+ industries in 11 sectors.
Portfolio construction
We prefer a low-turnover, pyramid-shaped portfolio: high-conviction active positions on top, supported by cash, fixed income, or passive exposure at the base. Position sizing is tied to quality, valuation, and downside, with diversification by underlying economic drivers.
Risk framework
- Market valuation discipline: scale exposure inversely with market overvaluation; hold more cash when markets overheat.
- Diversification: across sectors, industries, and instruments.
- Guardrails: limits on leverage, concentration, and factor exposures; emphasis on liquidity.
- Behavioral discipline: stay calm in volatility, avoid herd behavior, and act on mispricings.
Capital allocation discipline
We are rigorous about opportunity cost—adding to strength, trimming into exuberance, and recycling capital into better risk-adjusted opportunities.
Manager mindset
Mindset, temperament, and perseverance matter: remain evidence-driven through cycles, resist fads and noise, and maintain confidence in disciplined analysis and decision-making.