EQ Fund

Investment Objectives

Our objective is straightforward: the long-term preservation of capital, while seeking opportunities to compound that capital at an attractive rate of return.

Principal Strategies of the C&C Fund

Value: Our strategy is philosophically simple (but behaviourally hard) and inspired by the ideas of Benjamin Graham, Warren Buffett, Charlie Munger, Howard Marks, Ray Dalio and others. In a world increasingly focused on short-term reward – and increasingly inattentive to risk – we believe our disciplined, patient approach to buying high-quality companies at moments of significant undervaluation is the best way to achieve this goal over the long-term.
We purchase common stocks that are trading at a discount to their intrinsic value according to our models. We do not leverage or short issues. As John Maynard Keynes put it, “Markets can stay irrational longer than you can remain solvent”. We prefer those that can first survive and then recover fundamentally. We want companies with cash-rich balance sheets and businesses with strong operating earnings. We hope to enjoy both improved business performance and a narrowing of the price-to-intrinsic value discount.

We Achieve Attractive Long-Term Returns By:

  • Buying high-quality/great businesses at reasonable prices for the long-term – this includes;
    • Businesses that are conservatively financed
    • Businesses with relatively high earnings yields (low P/E ratios)
    • Businesses that trade below their liquidation value
  • Focus on underlying economic values and business performance.
  • Stay within our circle of competence – a complicated investment does not necessarily indicate higher expected returns.

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Verification

Overall Objective

Deliver capital appreciation and generate positive alpha