Our investment philosophy includes extensive research, a thorough understanding of risk versus reward and active management with, what we believe, to be superior trade execution.
All investments carry some element of risk; we believe that risk can be reduced through a variety of factors, including an extensive research process. This process includes attention to legal, environmental and other factors that may affect the real estate in our portfolios. We strive to avoid investing in depressed assets where profitability and assets are hard to understand and downside is difficult to ascertain.
Understanding Risk vs. Reward
We emphasize downside protection, focus on fundamental and technical factors and lean towards companies with hard assets. We apply our own unique revenue models and years of experience to measure risk, rather than relying solely on reporting, which often lag reality.
In addition to reporting risk, there is a portfolio risk. We attempt to mitigate portfolio risk by generally investing no more than 50% in any one single asset and no more than 20% in any one industry under normal market conditions. We invest approximately 80-90% in the U.S. and Canada, with no more than 25% outside the U.S. We may fully hedge our foreign currency investments.
Active Management with Superior Trade Execution
We anticipate that our asset portfolio turnover will be approximately 200% a year; accordingly every 1/8 or 1/4 saved can have a meaningful impact to our returns.
This investment team has never experienced a default in its short duration investing.