We view common stock ownership as an investment in a business. As a long-term investor, we employ a value-oriented approach to security selection. We seek to invest in companies when we believe that valuations are modest relative to earnings, cash-flow or asset values. Our focus is on fundamental business analysis, with no attempt to forecast market trends or mirror market indices. We strive to limit risk through investment in large cap companies that generally have demonstrated records of profitability, conservative financial structures and shareholder-oriented management. Although the Fund is subject to concentration risk, the portfolio is diversified at both the sector and company levels to help mitigate risk.
- Free cash flow generation
- Sustainable competitive advantage
- High returns on capital
- Capital allocation discipline
- A superior investment opportunity is identified
- The original investment thesis changes
- The investment has become significantly overvalued