Investment Philosophy

We buy businesses for the long term at attractive prices

Equities

Value over growth.
Contrarian bias, following the consensus often leads to poor returns.
Long term, low rotation. Equities are a long duration asset and best returns are obtained by "doing time" in good ideas.
We seek alpha by choosing a maximum number of stocks (30-35). Undue diversification leads you to the index.

Bottom up stock picking seeking absolute return with emphasis on fundamental valuation tools. Contact with analysts and company management integral to the investment process.
Asset allocation: Absolute stock market valuation compared with interest rates and in the context of economic/profit cycle and inflation rates.
Plain vanilla index derivatives used to manage market risk.

Bonds

Duration risk is accepted only if yield offered is attractive from an absolute point of view in nominal and real terms.
Credit risk taken on only if spread is attractive in absolute terms. Preference for low credit risk.

Checks & Balances

Joint decision making by three partners.
Avoiding errors by others as important as own success.