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our focus
seeking valueWe are value investors. This encompasses much more than just embracing
stocks priced at discounts to intrinsic or fair value. That certainly requires detailed bottom-up
analysis by experienced, qualified and diligent analysts, but the true mark of a value manager is
measured in mental and intestinal fortitude. Buying beleaguered stocks and avoiding seemingly
eminent success stories (because their valuations invariably depend on unrealistically good
fortunes) is psychologically exacting and difficult to explain to clients. We are dispassionate
and stoic and therefore able to accomplish this.
deferring to the virtues of diversifications We are abjectly aware of our future
fallibility and frequently remind ourselves of our painful past failings. Together with a
constant awareness that the funds belong to our investors and are not academic experiments
for us to hone our skills, this means that we will always defer to the virtues of diversification.
Our company's name was chosen to represent this - Orthogonality is the mathematical property of
independence in many dimensions. This is the portfolio equivalent of not placing all one's eggs
in one basket.
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