We believe that the Industrial Revolution and capitalism changed the world for the better by providing the means to bring new products to market that improve the lives of all people in the civilized world.

Capitalism works because capital enters innovative, profitably growing businesses and exits obsolete, fading businesses. This Darwinian process of survival of the fittest creates an environment in which the winners and losers are constantly shifting and the economic system grows stronger as it evolves.

The role of the stock market is to judge future winners and losers and in the process serves to efficiently allocate the economy’s resources.

In the near term, stock market prices often reflect excessive optimism or pessimism, but in the long term, market prices succeed in efficient capital allocation as evidenced by the tremendous advances in science, technology, and human knowledge over the last 200 years.

By understanding and respecting the stock market’s role, we believe we can invest our clients’ capital in a disciplined way to participate in the long-term wealth creation of the stock market and to deliver excess returns over the long term by taking advantage of near term market inefficiencies.