Opportunity exists where short-term valuation discounts long-term opportunity
A consistent process is more valuable than relying on information advantage or intuition
Focused on capital preservation
Total return oriented
Our strategy is to invest in a limited number of high quality companies, and hold them as long as their fundamentals remain intact. Capable management and sound finances are critical considerations in the investment process. Investments are made when it is believed a company’s long-term outlook is sound and the shares are fairly priced.
The primary focus is on business analysis. We recognize that economic value lies in businesses, not stocks. Quality companies with successful track records that have fallen from investor favor may be of interest if we determine the cause of investor disaffection is temporary, and that share prices fail to reflect our assessment of intrinsic value. However, companies with poor records, or those that suffer reversals deemed likely to be permanent, are avoided regardless of how “cheap” their shares may appear.
Business Characteristics We Favor
Free cash flow generation
Sustainable competitive advantage
High returns on capital
Capital allocation discipline
Our Portfolios Our portfolios are prudently diversified, usually holding 20-30 stocks. Limits on the weight of individual investment positions and economic sector exposure are used to avoid excessive concentration.
Sell Discipline Positions are reduced or sold if:
A superior investment opportunity is identified
The original investment thesis changes
The investment has become significantly overvalued
Jeffrey D. Lent
John P. Petrofsky, CAIA
Shawn M. Hendon, CFA
To build investor wealth over extended periods.
To invest in a limited number of high quality companies that have a record of increasing sales and earnings, and hold them as long as their fundamentals remain intact.
Torray LLC is an independent registered investment adviser. To receive a list of composite descriptions of Torray LLC and/or a compliant presentation, please contact Hugh Tawney at 855.753.8174 or email Tawney@Torray.com.
Torray LLC claims compliance with the Global Investment Performance Standards (GIPS®).