Investment Approach

The beliefs behind our Investment Approach

 

Ultimately, stock/bond prices reflect the company's real value

We believe that despite short-term market fluctuation, cash flow, revenue and the intrinsic value of companies ultimately drive stock prices in the long run.

 

Greater market inefficiencies exist among smaller companies

Its rare to find a small cap company that is covered by sell-side analysts. That's ideal for us - inefficiencies almost always occur in over looked companies. An average TA25 company is covered by dozens of analysts - we don't spend time competing with them.

Fundamental and disciplined analysis leads to better investments

Our research is for the exclusive benefit of our investors. As part of our ongoing research on companies, we maintain communication with company managements and controlling shareholders. We visit them on a regular basis to further our insight into the company's performance.

 

Active minority approach is a must

Research is most important but not enough. Payments to managements and controlling shareholders must be constantly checked and when they exceed a reasonable level we act firmly. As we see it, the equation is clear and simple: the higher management costs are - the smaller the EPS gets.