Safeguard and Precondition Requirements in Manager Selection

ALIGN INTERESTS a portfolio manager, who places the majority of their investable assets in the portfolio they manage, is better aligned with investors

MAINTAIN SIGNIFICANT EMPLOYEE-OWNERSHIP providing ownership stakes to key employees can more effectively attract and retain investment talent.

EXERCISE PRICE SENSITIVITY buy when a security is attractively priced. In the absence of compelling ideas, hold cash.

FORMULATE A DIFFERENTIATED VIEW managers can distinguish themselves through differentiated idea-sourcing and security selection.

SIZE POSITIONS BASED ON CONVICTION build a portfolio of high conviction opportunities and know them well.

BE SELECTIVE WHEN PARTNERING WITH INVESTORS stable capital is a critical component to achieving investment success.

“We really can say no in 10 seconds or so to 90% of all the things that come along simply because we have these filters.”

– Warren E. Buffett

If you’re an investment manager that meets these preconditions and would like to submit your strategy for our review, please email information to: