Strong Record of Capital Preservation
Preserving capital when market prices are falling can be essential to realizing portfolio objectives and achieving superior performance. Generally, significant declines in market price occur when market forces have elevated the prices of securities to levels that exceed their fundamental value, or when the economic environment changes.
We seek to preserve capital in all portfolios that we supervise by managing asset allocation. Driven by our forward-looking proprietary research, we reduce or eliminate exposure to assets where the market price makes the future return either no longer attractive or less attractive than another alternative. This has the effect of preserving capital by avoiding overpriced assets, as well as assets whose fundamentals are declining.
By applying this discipline, we believe we have built a strong record of capital preservation that has contributed to a solid record of long-term, risk-adjusted returns.