David Fleer
Bristlecone Value Partners, LLC
12301 Wilshire Blvd., Suite 320
Los Angeles, CA 90025 USA
Work 1-877-806-4141
www.Bristlecone-VP.com
:: Large Cap Value
:: LCV Investment Philosophy
:: Foundations & Endowments


Large Cap Value Investment Philosophy

Markets may be efficient at assessing the value of companies in the long run, but stock prices can stray substantially from the value of the underlying business in the short run.

As value investors, we invest when the price of a company’s stock is well below our estimate of its value. This discount provides a margin of safety (a concept introduced by Benjamin Graham) and, when the estimate is correct, an attractive risk-reward ratio.

Process:

New investments are usually made at a minimum price-to-value discount of 30%;
Stocks are sold when prices reach intrinsic value, when the long-term fundamentals of the company have deteriorated (value impaired), or to reallocate capital into an investment trading at a greater discount;
We concentrate on our best ideas. Our typical mature portfolio includes 30 to 40 mid
to large-cap US companies (typically greater than $3 billion in market capitalization);
Portfolio is constructed one idea at a time, from the bottom-up, with no pre-determined industry allocation;
Cash position is a by-product of the flow of ideas in and out of the portfolio; and,
Annual portfolio turnover is typically below 30%, resulting in low transaction costs and fewer taxable gains over time.

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