Unlike many Investment Advisors, I do not try to time or “trade” the market but prefer to invest in undervalued companies.
I tend to invest in companies that have been ignored, or have fallen under the radar screen of the general public. In particular, I look to identify turnaround situations; ones where there is a positive turn in the company’s fundamentals. I keep in close contact with the companies, and while the general market is looking elsewhere, I pick the low hanging fruit and wait for the market to “unlock” their value.
There are periods of time in which I will remain in cash, but only until I find the right mix of equities to diversify a client’s portfolio, or until I feel there is an opportune time, such as the market decline in 2000 – 2002. I do not invest in bonds or mutual funds, and have limited exposure to income trusts. Overall, I am interested in capital gains and believe that with a little hard work, due diligence, and awareness, one should be able to out-perform all of the above.
