We believe that these characteristics, coupled with stringent valuation discipline, will generate attractive long-term returns for our clients. As contrarian investors, a market misunderstanding, overreaction or controversy which we believe is unwarranted often provides us an entry into a high-quality company at a great price. We strive to build a concentrated portfolio of our best ideas in order to add the most value through stock selection as studies show more concentrated portfolios tend to outperform over time.

Just as medical students pledge to “first, do no harm,” our first priority is capital preservation, protecting your assets from painful setbacks. We do this by creating a margin of safety in buying high-quality stocks below what we believe to be fair value, establishing new positions slowly and building them incrementally over time, and being unconstrained in our ability to hold cash when more attractive opportunities are scarce.