Philosophy
We believe our philosophy provides a time-tested foundation for our repeatable value investment discipline
Our Process
Core Value and Deep Value Idea Generation
Our Sell Discipline
Better Idea
We will replace a name for a significantly better reward/risk opportunity.
Change in Thesis
If new information suggests we have made a mistake or Key Thesis Points™ is broken, we will immediately liquidate the position.
Trimming
If a position becomes too large or the reward/risk ratio is less favorable, we will likely trim it down.
Valuation
Deep Value names are sold at fair value estimates. Core Value holdings are sold based on valuation alone only when we believe they are significantly stretched.
Tax Efficiency is a Byproduct of our Disciplined Process
The visual shown above is for illustrative purposes only and does not guarantee a certain level of performance or success. Not all investments will reach or exceed their estimated fair market value. Investors can lose all or part of their money.
Buy & Hold
Longer holding periods are inherently more tax efficient.
Strategy Implementation
We maintain a contrarian discipline of buying out of favor stocks. Generally we make a small initial purchase (1-2%) with anticipation of further price declines and additional buying opportunities. Dollar cost averaging produces a variety of tax lots. As stocks rebound toward fair value estimates, higher cost lots offset embedded gains, leading to a more tax efficient portfolio.
While low tax implications are not the main focus of the strategy, they tend to be a by-product of our disciplined buy/sell process. The mutual fund vehicles of our strategies illustrate the tax efficiency. (see mutual fund distribution history for more information)