Intrinsic Value Equity™ is designed to generate long-term compound returns by owning high-quality businesses at prices materially below their estimated intrinsic value. The strategy is rooted in the belief that, over time, market prices converge toward underlying economic value — but only for investors willing to think independently and act patiently.
This strategy does not attempt to predict market movements, economic cycles, or short-term trends. Instead, it focuses on what can be analyzed and controlled: business fundamentals, valuation discipline, and risk management.
Equity markets are efficient at distributing information, but they are not always efficient at pricing businesses.
Prices are influenced by:
These forces can cause prices to deviate significantly from underlying value — sometimes for extended periods. Intrinsic Value Equity™ exists to take advantage of these deviations, not by forecasting when they will correct, but by building portfolios that benefit when they do.
Value investing is not about being early. It is about being right — eventually.
Public markets exist to facilitate transactions, not to provide instruction.
Prices fluctuate far more than underlying business value. This volatility is often misinterpreted as risk, when in reality it represents opportunity for disciplined investors.
Intrinsic Value Equity™ treats markets as a venue, not a compass. Investment decisions are driven by analysis of businesses, not by the behavior of other market participants.
Intrinsic value represents the present value of cash that can be taken out of a business over its remaining life, adjusted for uncertainty.
Because intrinsic value cannot be known with precision, Intrinsic Value Equity™ emphasizes:
A margin of safety is required between price paid and estimated intrinsic value. This margin serves as the primary defense against permanent capital loss and analytical error.
The strategy is built using a bottom-up, research-driven process.
Key characteristics include:
Position sizes reflect conviction, valuation, and risk — not index weights or popularity.
Intrinsic Value Equity™ prioritizes businesses that:
Management quality and capital allocation discipline are evaluated carefully. Businesses that destroy value through poor capital decisions are avoided, regardless of short-term performance.
Volatility is expected in equity investing. Intrinsic Value Equity™ does not seek to minimize price fluctuations — it seeks to avoid permanent capital loss.
Risk is defined not as short-term price movement, but as the probability of:
By anchoring decisions to intrinsic value rather than market price, the strategy reframes volatility as a tool rather than a threat.
These constraints protect the integrity of the strategy.
Intrinsic Value Equity™ is designed to:
It intentionally avoids:
Intrinsic Value Equity™ typically serves as a core long-term growth allocation.
It is often used to:
Because it is valuation-driven, its performance may diverge from market benchmarks over shorter periods — a necessary feature, not a flaw.
One of the greatest challenges in equity investing is behavior.
Intrinsic Value Equity™ helps counter:
From a governance perspective, the strategy provides a clear decision framework that can be evaluated over appropriate time horizons, rather than quarter by quarter.
Intrinsic Value Equity™ is well suited for investors who:
Suitability depends on objectives, risk tolerance, and overall portfolio structure.
The value of Intrinsic Value Equity™ emerges through:
By staying anchored to fundamentals, the strategy seeks to produce results that are durable, repeatable, and defensible.
