Independence - Focus - Transparency - Performance
Investing for the long term
We invest for a period of 3 to 5 years on average. This longer holding period allows us to increase our chances for enhanced returns, while also helping to minimize transaction fees and reduce the impact of the capital gains tax.
Relying on our own fundamental research
Because of our INDEPENDENCE, we build our own financial models and conduct our own analysis of the intrinsic value of the securities we are evaluating. We communicate frequently with management teams to identify opportunities and risks.
Adopting a different point of view
We want to develop a different point of view than the rest of the market in order to identify opportunities that provide superior returns. Our approach is focused on discovering bargains and unpopular stocks that have fallen out of favour in the market.
Concentrating on a small number of holdings
We concentrate our portfolio in 20 or so holdings based in North America. We focus on a smaller number of securities to allow us to gain a solid understanding of the companies and identify their risks. This work reduces the chances of making errors and suffering a permanent capital loss.
Retaining a margin of safety
We consider a margin of safety essential, which we define as the difference between the trading value accorded by the market and the intrinsic value based on our analysis. The lower the trading price compared to our valuation, the greater the margin of safety, which provides added protection if our initial hypotheses proves overly optimistic.
Maintaining our discipline
We are extremely disciplined investors. We only invest in securities that are trading at a great discount to the estimated, intrinsic value. We are patient and maintain surplus liquidity when there are no opportunities in the market.
Investing alongside with our partners
All the employees of the firm are investors in the Tonus Partners' Fund. We believe this approach is beneficial for you as well as for us because our interests are mutually aligned.