- Research driven, security by
security approach. Bottoms up,
focuses on investment
fundamentals, always starts with strong
balance sheet and conservative accounting.
- Targets securities inexpensive on an
absolute, not relative
basis. Fund will employ a
"buy and hold" strategy.
- Securities often neglected,
overlooked or orphaned in marketplace,
may trade under radar screen of large
institutional investors.
-
Downside risk always assessed
before upside potential. Will attempt
to buy
with margin
of safety to protect against loss of capital.
PORTFOLIO STRUCTURE
- Securities purchased will normally fall into one of three categories:
1. Convertible bonds and preferred stocks provide current income plus
upside potential embedded in their convertibility.
2. Generals are deep discount common stocks that are available at
very inexpensive prices and offer lots of value for price paid.
3. Special Situations/ Workouts offer superior appreciation potential
dependent on corporate event like merger, reorganization,
divestiture, spinoff or liquidation.
UNIQUE FUND FEATURES
1. Focus on specific asset class, small and micro-cap value where
price inefficiencies may be high and competition low.
2. Disciplined in style & execution- no style drift or market cap creep.
3. Fund will close to new investors when assets reach a reasonable
level so as not to dilute the quality of investment ideas.
4. Portfolio manager and family have substantial investment.
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