Deep Value Investment Philosophy
Sector-first, contrarian approach to global value investing
While Wall Street chases quarterly earnings and popular trends, we focus on decades-long sectoral shifts. Our methodology: find unloved sectors trading at deep discounts to intrinsic value, then buy a diversified basket of equities within those sectors.
Investment Approach
Three core principles guide every investment decision
Deep Value
We invest where others fear to tread. When sectors are universally hated and trading at generational lows, that's where asymmetric opportunities emerge.
- Anti-consensus investment thesis
- Contrarian timing on sectoral shifts
- Value in unloved, overlooked markets
Global Mandate
Geography-agnostic investing. We go where capital is treated best and value exists, whether that's Kazakhstan, Peru, or overlooked developed markets.
- Geographic risk diversification
- Larger universe of opportunities
- Benefit from changing capital flows
Sector-First Selection
We identify sectors before companies. First, find structurally cheap sectors with improving fundamentals. Then, select high-quality companies within those sectors.
- Top-down sector analysis
- Bottom-up company selection
- Quality metrics within cheap sectors
Small Positions
Positions generally don't exceed 2% of our portfolio, and target asymmetric returns. This has allowed for superior performance without concentration risk.
- Asymmetric risk-reward profile
- Diversification through position sizing
- Target outsized returns per position
Research Process
Systematic approach to identifying asymmetric opportunities
Sector Screening
Identify sectors trading at historical discounts to book value, cash flow, and tangible assets. Look for universal pessimism and structural headwinds that may be temporary.
Fundamental Analysis
Deep dive into sector dynamics: supply/demand fundamentals, regulatory environment, competitive positioning, and long-term structural trends that could drive recovery.
Company Selection
Within attractive sectors, identify companies with strong balance sheets, profitable with low debt, and sustainable competitive advantages that can survive and thrive through cycles.
Position Sizing
Risk management through small position sizing. Removing the reliance on stock picking, and instead building a basket of positions to express the view on a sector or industry.
Why We're Different
Our Anti-Mainstream Investment Philosophy
While Others Blindly Follow Mag7
We concentrate on asymmetric opportunities in unloved sectors where where we believe recovery is "when, not if."/p>
While Others Pander to ESG
We invest where capital is treated best, not where it's politically correct or fashionable.
While Others Stick to Home
We're geography-agnostic. Value opportunities exist globally, and we pursue them wherever they emerge.
While Others Chase Quarterly Earnings
We invest for a decade or more in structural sectoral shifts, not quarterly profit fluctuations.
While Others Seek Consensus
We actively seek deep value in specific sectors where others have capitulated from fear or impatience.
While Others Follow the Crowd
We maintain conviction in our contrarian thesis - even when markets disagree in the short term.
Risk Management
Capital preservation through disciplined approach
Position Sizing Discipline
Position are typically 1% - 2% of our portfolios and target asymmetric returns - bending the laws of probability in our favour
Sector Over Company
We believe the majority of a stock's movement is driven by the sector. The fortunes of a sector is easier to predict than any single company
Geographic Diversification
Global mandate provides natural diversification across currencies, political systems, and economic cycles.
Deep Value
Focus on equities that are trading at heavy discounts to intrinsic value, reducing the likelihood of sustained downside risk.
Skin in the Game
Both Chris MacIntosh and Brad McFadden invest their substantial personal capital in the same strategies offered to clients. We eat our own cooking - your success is our success, your losses are our losses.
Client Alignment
Significant personal capital commited to the same strategies. We succeed when you succeed.
Long-term Thinking
Personal capital commitment ensures focus on long-term performance, not short-term trends.
Radical Transparency
Regular updates on both successes and failures. No marketing spin, just honest assessment.
Ready to Discuss Your Investment Strategy?
Schedule a consultation to explore how our contrarian approach might fit your portfolio and investment objectives.
Consultation available for qualified prospects with $200K+ investable assets