INVESTMENT PHILOSOPHY

We are value investors. Our investment philosophy is rooted in the security valuation principles of Benjamin Graham and David Dodd. We use a bottom up, fundamental process to identify companies that are trading at a discount to our estimate of intrinsic value.

“There’s only one intelligent form of investing: figuring out what something is worth and seeing if you can buy it below that price. It’s all about value.”

—Howard Marks

Investment Committee chair Benton Bragg on Investment Philosophy

Portfolio Manager Steve Scruggs on Investment Philosophy

Our investment philosophy is built on three guiding principles:

DILIGENCE

We must conduct the research required to discover quality companies led by strong managements in growing industries.

DISCIPLINE

We must maintain the discipline required to buy companies only at attractive valuations and sell when they reach full valuation.

PATIENCE

We must have the patience required to be disciplined when markets go through cycles of overvaluation, recognizing that our approach will reward our shareholders over full market cycles.

Patient investing in an impatient world

It has been our observation that most investment managers conduct due diligence and research and many managers claim to have discipline. In our opinion however, very few managers have the patience to actually stick with their investment philosophy.

At Queens Road, we are patient; our philosophy and underlying portfolio management process do not change with changing market conditions. We think this is critical to our success.

FUND FACT SHEETS