Stacey Muirhead Captial Management

INVESTMENT PHILOSOPHY

Cash and Other Net Assets

While it is our least preferred option for allocating capital in most circumstances, from time to time we find ourselves with more capital than good ideas. Rather than deploying our capital into opportunities that we would consider of inferior quality or with unfavourable risk versus reward characteristics, we will park such excess capital in cash and cash equivalents, usually short term treasury bills, while we continue to search for superior return opportunities into which to allocate capital. On occasion, we may purchase longer term government bonds as well. When holding such investments, our overriding concern is to both minimize interest rate risk and credit risk to the greatest extent possible. We are also attentive to ways that will mitigate risks to the capital we manage for our investors in a measured, thoughtful and cost effective fashion. We actively consider all viable methods to reduce the risks associated with adverse movements in foreign exchange values, equity prices, interest rates and any other risks that can be identified. This may include the purchase or sale of various derivative instruments from time to time.

Some Final Thoughts

We have many years of experience in applying this investment philosophy for our investors. We know that proper execution of this approach will lead to satisfactory results over time. That is not to say that we don't seek continuous improvement in our ability to analyze and select investments. We set incredibly high standards for ourselves and are never totally satisfied with our results. We owe our investors nothing less.

“In the short run, the market is a voting machine but in the long run it is a weighing machine”

Benjamin Graham

 

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