Equity Investment Strategy

Value Architects is a value-oriented and research driven investment manager with the objective of producing long-term capital appreciation while preserving capital in adverse markets. We believe owning the most growth for the least price provides downside protection.  We design and build our portfolio by finding good businesses.  We make a clear distinction between investment risk and market risk.  We believe investment risk is attributable to mistaken analysis of the company’s growth, cash flow, and most importantly it’s sustainable competitive advantage. Market risk is volatility of stock prices.  A disciplined research process minimizes investment risk and utilizes the opportunities that market risk can create. In selecting the securities that comprise our investment portfolios, Value Architects looks well beyond earnings per share, and other publicly available financial measures to search out and quantify value that others have overlooked.  We invest in companies with the following characteristics: Posses a market value below its intrinsic value Generates free cash flow in excess of their operational needs Earns a return on invested capital above industry norms Exhibits a sustainable competitive advantage and the ability to maintain growth First-class management with proven ability to allocate capital intelligently and who have an ownership stake Your portfolio is diversified across S & P defined sectors, typically having exposure across a minimum of seven of the ten sectors.  At a minimum, portfolios will contain at least twenty securities.  Individual equity position weightings will be a minimum of 2% and a maximum of 10%.