“The goal of climbing big, dangerous mountains should be to attain some sort of spiritual and personal growth, but this won’t happen if you compromise away the entire process.”

Yvon Chouinard


Conviction is paramount, yet stubborness is the undertaker of capital.

Drawndowns are our enemy.

Position sizing is our faith.

  • Scarity of capital and endeavors to accumulate it over generations, show that a disciplined combination of intelligent conservatism, entrepreneurial thinking and controlled tactical risk-taking lead to long-term protection.
  • Risks can be perceived and assessed in many subjective ways. We extensively discuss with our clients their own definition of risk and analyze which risks should and should not be mitigated.
  • Diversification among asset classes, countries, sectors, capitalization sizes and tactical positioning can be achieved only in normal market conditions. When market stresses or crises occur, correlations between assets increase rapidly, thus additional risk management techniques are needed to protect capital. Our exemplary record stems for our philosophy that cash is an active asset class.
  • Disciplined, rules-based risk management is the most important module of the investment process, with predictive ability (or the perception of it) following far behind. The ability to cut losing positions early and ride profitable ones with non-complacent conviction yields superior long-term performance and low drawdowns.
  • Metrics that we deploy for a portfolio's risk assessment include: cash-flow uncertainty, credit quality, inflation and interest rate sensitivity and volatility.