When it comes to investing, my suggestion is to first understand your strengths and weaknesses, and then devise a simple strategy so that you can sleep at night!” – Walter Schloss

Concentrated Worldwide Value Fund

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Impressive absolute and relative returns since inception in 2004

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Private investment partnership focused on undervalued securities worldwide

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Long-term philosophy: quality businesses at low prices to reduce risk

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Concentrated portfolio built with high conviction and disciplined selection

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Low-risk, long-term strategy aimed at preserving and growing capital

Concentrated investing with no geographic limits

This Concentrated Worldwide Value Fund, founded in 2004, focuses strictly on industry leaders in sectors with a track record of long-term leadership sustainability.

The fund avoids investments with financial leverage and pays no more than between 4–10X normalized economic earnings. The goal is to find wonderful companies at wonderful prices and in order to find these opportunities the fund managers are not limited to any geographic restrictions.

Their research process is very thorough as if to buy an entire company.

Repeatable strategy for strong future returns

The fund managers expect to deliver above-average returns going forward by following the same approach that enabled them to demonstrate superior performance in the past:

  • Invest in high-quality, easy-to-understand businesses, whose products and services are virtually guaranteed to be desired or needed 5, 10, and 20 years from now – regardless of changes in technology, demographic trends, healthcare reform, or commodities prices;
  • Focus on businesses that carry little debt, and preferably enjoy substantial cash positions;
  • Partner with management teams whose interests are aligned with those of shareholders’, preferably through meaningful equity ownership;
  • Purchase these businesses at attractive valuations, defined as less than 10X normalized sustainable Free Cash Flow.

Portfolio characteristics

  • Top 5 positions generally account for 60-70% of the total portfolio
  • Expected holding period of 3 to 5 years; long-only and generally unleveraged
  • The Principals have majority of their net worth invested in the fund, and are the single largest investor in the fund
  • Good Business & Good Management @ Good Price