Our mission is to produce superior, risk-adjusted, long-term absolute, investment returns with an emphasis on capital preservation.
We are opportunistic global special situations investors. We employ a fundamental, bottom-up approach to investing. We focus on complex, misunderstood and under-researched companies around the world that can be purchased for substantially less than their intrinsic values, and where catalysts exist to create value.
Our investment philosophy is comprised of several core principles:
- We emphasize capital preservation by investing in companies trading at significant margins of safety (i.e., the gap between what we pay for a security and our estimate of its intrinsic value).
- We identify catalysts that can lead to unlocking value. Catalysts may include management changes, shareholder activism, and operational and financial restructurings (e.g., cost-cutting, asset sales, breakups, spinoffs, mergers, acquisitions, liquidations, share buybacks, recapitalizations, etc.).
- Our global, unconstrained mandate produces non-correlated results. Staying flexible gives us the ability to scour the globe and identify opportunities in diverse markets, while staying agnostic to size of company or how we can participate (e.g., equity or debt) and never compromising our investment discipline.
- We maintain investment focus by typically being concentrated in 20 to 40 names with a high percentage of investments in our top 10 holdings.
- Focused and disciplined means knowing our investments intimately and staying patient as the process of value creation unfolds.
This philosophy guides our daily effort to produce attractive, risk-adjusted, long-term absolute, investment returns. To accomplish this, we strictly follow a well-defined and disciplined investment process that leverages our value investing pedigree, extensive business operating experience and global relationship network that has been built over the past 25 years.
* We define intrinsic value as our estimate of the price a reasonable buyer would pay for all of a company’s assets. We generally seek discounts of at least 40%, but will make exceptions in certain situations where we believe value can be created in the short-term, or, if a particular management team has proven to adeptly compound corporate net asset value, and stock price, over many years.