We specialize on the worldwide administration of financial assets on an advisory and discretionary basis. Hereby we cover all asset classes.
Our goal is to double the value of our clients' capital every seven years for an average return of about 15% a year plus one cyclical down year.
While the actual investment strategy will reflect the risk tolerance of the individual client and can range from “ultra-conservative, capital-preservation-only” to “income-oriented” to “aggressive, maximum growth potential”, our typical approach is to invest our clients' capital in what we believe are high quality, predictable, proven investment situations in combination with selected “special situations”:
The companies in which we invest normally increase profits significantly every year, good times and bad, and very few companies meet our standards. Consequently, our client portfolios hold only approximately 18 to 20 names.
We are long-term investors who ignore Wall Street fads and focus on the underlying value and growth dynamics of a business. We do not engage in market timing. We feel that emphasis on short-term performance in the stock market is not the way to achieve superior (after-tax) rates of returns.
Investing long-term in a very limited number of high quality, generally non-cyclical businesses means that we will typically not have holdings in many of the S&P industry groups such as airlines or car manufacturers. As a result, our performance does not closely correlate to that of the market averages. We also know that from time to time, lower quality cyclical issues will outperform high quality shares for relatively short intervals.
Nevertheless, we are convinced that the superior businesses in which we invest our clients' funds are considerably less risky and will generate substantially better returns than most alternative investments over the long pull.
In addition to the aforementioned discipline, depending on the client's risk profile and goals, we seek to enhance the total return of an investment portfolio by selectively seeking out special situations or opportunistically placing trades of a more short-term nature. The scope may range from investing in beaten-down quality stocks to identifying potential merger and take-over candidates to buying foreign currencies.
Typically, a client gives us a limited power of attorney to a segregated account with a financial institution of his or her choice. If a client has no preferences, we are able to make recommendations based on the needs and circumstances. Hereby, we will pass on to the client in full all discounts on fees negotiated on behalf of all of our clients.
We are compensated by a modest, tax-deductible fee that is based on a certain percentage of assets under management. Fees are charged pro rata, quarterly and in arrears.
Because we manage our clients' accounts on an individual basis and not "fund-style", the actual investment strategy can and will reflect certain client preferences.
Lastly, our mandate can be canceled at any time.