Philosophy
We are value investors who are passionate about what we do. We offer an alternative for conservative investors who want more than “set it and forget it” mutual funds and ETFs. We reject cookie-cutter approaches and go beyond traditional portfolios to invest directly in:
Equities
Fixed Income
Real Estate
Private Equity
Our investment philosophy is grounded in the belief that from time to time financial markets function inefficiently, resulting in mispriced investment opportunities. Through discipline and patience, we take advantage of these opportunities, buying undervalued investments that we believe will offer superior returns and limited risk.
To achieve these results requires qualities that differentiate us from other firms:
- Long-term time horizon: The returns we seek on your behalf cannot be found in short-term buying and selling, but require a disciplined, long-term perspective. We measure results over rolling five-year periods.
- Open mandate: We invest where we see value and have no restrictions on industry, geography, asset class or market capitalization.
- Research: We find our opportunities through rigorous and in-depth research.
- Opportunistic: We buy when others are selling, and sell when others are buying.
- Risk-averse: Since our priority is capital preservation, we are only willing to make investments offering a discount to their intrinsic value. We maintain diversified holdings and are willing to hold cash when our research shows a lack of attractive opportunities.
Portfolio Composition
We build diversified and durable portfolios that can be sustained through challenging market conditions. We allocate capital in four specific areas: public equity, fixed income, real estate and private equity.
PUBLIC EQUITY
Portfolio of 25–35 publicly traded equity investments. Consists of high-quality franchise companies that are undervalued and mispriced.
FIXED INCOME
Portfolio of 25–35 individually selected corporate and municipal bonds. Majority exposure to California munis (triple-tax-free), plus individual corporate bonds issued by high-quality companies.
REAL ESTATE
Special situation opportunities to co-invest in private real estate transactions. Target of 4–8 individual investments.
PRIVATE EQUITY
Special situation opportunities to co-invest in private equity transactions. Target of 2-4 individual investments.
