Our investment philosophy is a straightforward one. We believe that experience, hard work and common sense, in conjunction with a well-founded and strictly applied investment approach, lead to successful results. Our investment approach comprises several guiding principles.
While we will make investments in companies of all sizes, we have a particular attraction to small and mid-sized companies. It is well established that smaller companies, as an asset class, have inherently faster growth rates and have historically outperformed larger companies over the long term. Given our pursuit of capital appreciation, we go where the growth is. These companies tend to be under-followed and overlooked, which can result in pricing inefficiencies and create an investment advantage for investors with access to the right research.
We believe that a rigorous, multi-disciplined research process is indispensable to uncovering profitable investment opportunities. Accordingly, we invest heavily in our own internal research efforts and the finely tuned process behind each and every portfolio decision we make. We combine economic and market research with in-depth fundamental company analysis to identify attractive investment opportunities.
We feel that the key to successful investing is to buy "good businesses." We view each purchase of stock as making an investment in the underlying business itself. Unlike market-timers or momentum traders, we take the time and effort to understand the businesses in which we invest. Through diligent research and hard work we strive to uncover solid companies with compelling growth prospects run by strong management teams.
When we make an investment in a company, we insist on buying in at a reasonable price to maximize return and minimize risk. A "good business" is not always a "great stock," and disciplined buy criteria are essential to making the distinction. While we look for companies with favorable long-term growth prospects, we will not overpay for that growth. Unlike some investment managers that follow either a distinct "growth" or "value" style, we feel these approaches are interrelated and that both must be considered in making investment decisions. Accordingly, we look for growth at a reasonable price (GARP).
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