Dynamic, Unconventional Thinking
We believe dynamic, unconventional thinking is required to find successful long-term investments. The investment team avoids relying solely on conventional descriptive attributes and places greater emphasis on predictive attributes that are verifiable but not always readily quantifiable. Our business analysis often emphasizes companies with unconventional attributes, including long product life-cycles, defensible competitive advantages, dormant assets, scalability, strong company leadership, favorable terms-of-trade, or companies that are experiencing structural change.
Our research is produced in-house and our research analysts are culturally guided to overcome confirmation biases as well as data availability errors. Confirmation biases and availability errors refer to an investor’s tendency to assign greater importance to information that is readily available, easily organized, and consistent with pre-conceived views. Hence, our investment strategies generally seek to take advantage of investors’ persistent focus on near-term data, need for immediate results, and misperception of price volatility as real business risks. We believe potential returns are higher for investors willing to take a long-term, patient view, and accept reasonable risks when the probability of long-term success is high.
Unconventional Predictive Attributes
Traditional Asset Managers
Conventional Descriptive Screens
In the current, low interest rate environment, many investors are reaching for yield. In many cases, they are looking to historically high income-generating investments, which may not produce the desired yield going forward. We believe our income strategies offer a differentiated approach.