Investment Philosophy

THB believes that stocks of Micro Cap companies are relatively inefficient, and that a focused portfolio of high quality names can offer superior risk-adjusted returns.

THB takes a very long term view of the investment horizon, and seeks to outperform over full market cycles by seeking out investment opportunities trading below their intrinsic value. We think like owners and look to invest alongside proven management teams with sound alignment to us as shareholders. We aim to construct a portfolio of high quality, self-funded, low risk companies with valuation metrics similar to or lower than the benchmark, yet with superior long term characteristics. We believe the best companies are able to grow their businesses organically and via acquisitions using internally generated cash flows. Debt should be kept to a minimum with a preference for companies who retire shares outstanding.

Approach

We have an active approach which utilizes quantitative and qualitative screening to help focus our fundamental analysis on companies that fit our desired profile. Our goal is to find stocks of companies that are trading below their intrinsic value and have superior operating metrics. We also utilize a proprietary Quality Assessment and Risk Ranking during the research and portfolio construction process which allows our investment team to more universally evaluate, compare, size, and manage risk.