We made the money that we're investing by focusing our efforts on a few great ideas. We run our fund in the same way. We do more research than most firms our size and tend to hold our securities longer.

We have three main strategies that we rotate among, putting the emphasis in areas where the market is most advantageous:

Special situations, where we identify mispriced assets and a catalyst to realizing value in those assets. These opportunities tend to have a much higher rate of return than we can typically find in equities over a holding period that tends to range between 6 months and 3 years.

Investments in well-run, undervalued companies. We look for profitable, high growth companies with significant operating margins and returns on invested capital. These investments tend to be hard to find at the right price, but when we do find them we may hold them for many years.

Arbitrage, where we seek out securities (typically of a single company) that are mispriced relative to one another in companies for which we have done substantial fundamental research. These investments tend to have very high rates of return over a relatively short holding period (usually less than 12 months) with limited upside and limited risk of loss.