Unlike traditional value investors known for investing in stodgy businesses with limited growth prospects, we consider ourselves opportunistic investors. We search for companies that are currently out of favor on Wall Street and are subsequently selling below our estimate of their intrinsic or private market value.
We also focus on finding catalysts that could make a company’s stock price ascend in value within a reasonable period of time. Since we estimate the intrinsic value of every company prior to its inclusion in a client’s portfolio, our sell decision is made the same day as our stock purchase. When a stock rises above our estimate of intrinsic value, we reexamine all assumptions. If nothing material has changed with the company, we will typically sell the security.
We constantly examine our portfolios and research new market opportunities. Our horizon is long-term, and we are willing to hold a high-cash position when we are unable to find intriguing investments. Therefore, we often use market turbulence to initiate or increase positions.