Our Investment Strategy further prioritizes industry sectors and geographic exposure in terms of risk and opportunity. Our fundamental analyst teams, within our global investment group, then research chosen sectors as part of their security selection process. Our overall process dictates a weekly review of these sector and industry rankings, adjusting them as necessary to reflect new valuation and fundamental data. We apply a rigorous due diligence process to all proposed investments within clients’ portfolios, including the following:

1. We meet with management teams, review their operations and assess the prospects for their firm and their industry.
2. We look for defensible corporate strategies with clear, understandable business prospects. Our analysts should be able to explain clearly and simply how the business makes and loses money, and the key variables determining success and failure.
3. We only invest in companies whose risks we can comprehend and quantify. Understanding the drivers of risk and the potential impact on investment performance is critical to our goal of capital preservation.
4. We search for management teams with strong history of executing their business strategy and whose record we can objectively measure.
5. We target companies with a growing cash flow stream. In our view, growing cash flow increases potential future value decreases risk and increases long term strategic flexibility of the business.

Bottom line, we are business evaluators determined to find attractive businesses at discounted valuations.