Our Mission
Deliver superior long-term returns to our clients while prudently managing risk and protecting their capital.
Investment Philosophy
Our Best Ideas
Only our best ideas find their way into the Value Fund. The size of our individual stock positions varies depending on our level of conviction and as such we aim to hold roughly 20 stocks in the portfolio.
The benefits of further diversification make sense for some, but we prefer to assume some shorter term volatility in exchange for what we expect will be longer-term outperformance.
Aversion to Leverage
We avoid the use of leverage. As a result, we are never forced to sell when market conditions are difficult (and stocks are undervalued).
How We View Risk
At GreensKeeper we reject the Efficient Market Hypothesis and the premise that volatility (unpredictable daily fluctuations in a stock’s price) is how to measure risk.
Instead, we view risk as the permanent loss of our clients’ capital. That’s why we focus on protecting against potential downsides as much as growth.
Investment Process
01. Read, Read, Read
We are voracious readers at GreensKeeper. Investment knowledge is cumulative and learning about different industries, trends and history helps us to connect the dots and spot opportunities.
02. Screening
Interesting ideas come from many places. In addition to our daily reading regimen, we utilize proprietary stock screeners and other high-quality sources to look for stock ideas that look attractive on the surface, but require further study.
03. Deeper Dive
Our very thorough due diligence process to gain a deep understanding of the company, its management team and its industry.
For a company to be investable, it has to pass three tests:
1. Do we understand the business?
2. Does the business have attractive economics and a durable competitive advantage (or “moat”)?
3. Is management shareholder-friendly?
04. Margin of Safety
If a stock passes our three investment tests, we then calculate the stock’s worth or intrinsic value and only buy when we believe that a stock is trading at a significant discount to our calculation. We demand a large margin of safety to protect and preserve our clients’ capital and will wait for the right opportunity. Extreme patience is required!
05. Wait and Monitor
A crucial component of value investing is patience. To see buying opportunities for what they are and to have the temperament to weather the storm in exchange for higher long-term returns in the future. This approach also minimizes capital gains tax and transaction fees.