A Systems Approach
We believe that investing, not trading, is the only way to create wealth; that time-tested fundamental investing, like Warren Buffett successfully does, works. As much an art as a science, our approach relies on being able to create actionable ideas from the synthesis and distillation of massive amounts of information.
We take a systems approach to investing; we evaluate all pertinent economic, financial, and geopolitical factors within each country and their impact amongst all nations. We utilize both a top down, global macro view, and bottom up, thematic and stock specific, methodology.
We reflect on all of this information deciding not only on our next step but what the impact will be several steps down the road as would a master chess player.
We have engaged the best in class service providers for the mid and back office functions to permit us to dedicate virtually all of our time to the portfolio, research and our investors.
In Depth Understanding
The key to compounding returns over time begins with the proper asset allocation and risk controls.
We realize that we live in a VUCA (volatility, uncertainty, complexity and ambiguity) world and as such maintain excess liquidity at all times.
We are aware of and consider mindset shifts, which are occurring everywhere, like the rise of populism in the world. We realize the need to hold core beliefs monitored constantly that serve as a compass guiding us through this changing environment.
Finally, we do in-depth independent, first hand research on each investment, which includes a thorough understanding each company’s strategic objectives to succeed in these times.
Bill served as Head of the Investment committee at Century Capital Associates, followed by Head of Investments for Worldwide Equities and Private Equities at the Quantum Fund. He was George Soros’ first partner. Finally, he was the Founding Partner, CEO and Head of the Investment committee at EGS.
Our long investments have increasing revenues, volume, operating margins, and cash flows and, most importantly, free cash flows utilized to increase shareholder value. Management is a key component in our selection process. Our shorts have the reverse characteristics of our longs. We normally have 25-30 longs and 5-10 shorts in our portfolio never going more than 95% net long when bullish nor less than 20% net long when bearish. There are always opportunities to profit.
We believe in open, transparent communication with our clients.
We believe that the management fee is not profit center and we must exceed the risk-free rate of return before earning an incentive fee with a high water mark.
We are true global investors.