Alpha Ideas

A “price conscious” buy is the critical lynchpin for our strategy, as it not only sets the basis  for future return potential, but as importantly provides downside protection to avoid a  return sapping capital loss.  It is said that patience is a virtue, and indeed for our strategy, patience for an appropriate discount is essential for our purchase decisions.  As we scour our broad and eclectic investment universe, we analyze many more companies than we will ever own.  It is this continuing due diligence of management discussions, supplier, vendor and competitor interviews and financial statement analysis that helps us build our industry knowledge and form our unique view on what an enterprise and its assets are worth.  We analyze many ‘good’ companies, but it is critical that we are patient and buy opportunistically when the discount to asset value provides an acceptable return and a mitigation of risk.-wrote fund manager Chip Rewey