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    Inverlochy Capital employs an opportunistic approach to identifying potential investments.  First, we scour the global investment landscape for opportunities that appear to offer strong potential returns with a comfortable margin of safety.  We seek absolute returns for our clients over the long term, while minimizing investment risk. 

    Our philosophy focuses us on securities that we believe trade at a substantial discount to their true intrinsic value.  The cheaper a security is relative to its intrinsic value, the greater the potential reward and the lower the risk.  By focusing on companies with sound balance sheets we increase the margin of safety for each of our investment choices.  This allows us time to be patient for the market to ‘discover’ the fundamental value of the securities that we have selected. 

    Every security purchased is viewed as if we were buying a piece of a business, not just a stock or bond certificate.  We believe that this approach to investing allows for significant investment returns while reducing risk.

    Using macro economic analysis to identify opportunities in various asset classes, primarily in North America, but with the ability to consider investments around the globe, we zero in on promising ideas.  After identifying favorable asset classes and geographies we begin a value driven bottoms-up investment process to find the best risk/reward to capitalize on the perceived opportunity. 

    Based on the conviction of our analysis and the consideration of macro-economic factors, we will take significant positions in securities and we hold them for the long term.  Portfolios tend to be fairly concentrated, holding between 20 and 60 securities.  For new clients, it can take several months for an account to become fully invested depending again on macro-economic considerations and individual security opportunities.  Normally a fully invested portfolio will retain approximately 10% cash but we have no aversion to holding much higher levels of cash when valuations or macro-economic uncertainty warrants it.   A significant cash balance gives us the ability to take advantage of opportunities as they may present themselves in the future.

    We believe that when investment managers have a substantial amount of their personal wealth tied up in their own investment recommendations, their interests are correctly aligned with those of their clients.