James Shircliff

We have formed, for lack of a better word, a committee, to which any analyst or portfolio manager can call for more immediate action on a holding than is currently being taken. If the committee by majority vote decides a stock should be sold, that decision, if I'm in the minority, overrides me as chairman [...]

James Shircliff

When a stock hits 90 percent of our value estimate, we formally review the fundamentals of the position and our estimates. We also may begin trimming, particularly if the position is large or less liquid. At 100 percent of estimated value, we are actively trimming the position. If we still have a position when it [...]

James Shircliff

We don't manage our cash balance in a strategic way. Part of that is a business decision: people hire us because they believe we know how to find great unloved companies, not because we're clever going in and out of cash. Part of it is also just realistic. As much as I'd love to be [...]

James Shircliff

We're big believers in the notion that losers in this business are the ones who make big mistakes and winners are those who make small mistakes. For that reason we try to be unsentimental about our positions, particularly those going against us. We do not average down after a position gets hit, for example. That's [...]

James Shircliff

Our valuations are based on estimated EBITDA 12 to 18 months out. We don't look out further because we have little confidence in our ability to forecast beyond that and because we're most interested in what the business is worth today. The art in the valuation is arriving at the appropriate multiple to put on [...]