Portfolio & NAV Updates
In order to track my performance throughout the years, I will be posting updates regarding my portfolio, and to share my current thoughts about the market. I intended to post this much earlier but work caught up with me. Readers can expect me to update this quarterly, and they reflect the current NAV of my holdings at the end of the second week of each quarter.
Accurate as of Sep 18 2011
Initial Net Asset Value: $10.00
Net Asset Value as of September 18 2011: $9.71
Fund Prospectus & Philosophy:
Our Aim
To engage in investment operations that upon thorough analysis, promise safety of principal and an adequate return.
Our Philosophy
As value investors, we invest in companies that we believe trade at a discount to their intrinsic business value. We do not seek to time the market, but rather pay a fair and reasonable price for companies that have good underlying business prospects.
We believe that over time, the price of a stock will eventually reflect the value of the underlying business. Each stock purchase is viewed as a part ownership of a business – and not just a stock certificate.
Our Process
Our investment process is not based on macro-economic factors, nor is it based on the performance of the economy. We also do not make investment decisions based on technical signals – such as the underlying performance of the stock market.
Instead we study the underlying characteristics of a business to determine the worth of a potential investment.
In particular, we focus on the following characteristics:
- A company’s ability to generate free cash flow consistently over time.
- A company’s ability to reinvest excess cash and obtain a good return on capital.
- Requires little or no debt to generate consistent cash flows.
- Underlying competitive advantages of the business over its competitors.
- Whether a stock price is trading at a significant discount to what we estimate to the underlying business value.
We only invest in companies that meet our strict investment criteria, and that are trading at a significant discount to their intrinsic values. We generally concentrate our portfolio in a relatively small number of companies that we have a high conviction of.
Our Holdings
The fund seeks capital appreciation by investing in a concentrated portfolio (approximately 5 – 20 companies) at any one point of time. It generally invests large-cap companies based in the U.S.
