INVESTMENT PHILOSOPHY

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We employ an absolute return mindset to long-only value investing.

We feel that our goals of providing consistent performance will continue to differentiate our firm and make our investment style particularly attractive.

Value investing is the art of buying assets for significantly less than the true “intrinsic” or business value to a rationale purchaser.

Our remote location sets us apart from the emotions and short-term views of Wall Street. This physical and psychological distance allows us to patiently and thoroughly inspect and select each investment. Our goal is to maximize long-term total return on capital. We also realize that prudent investors want to minimize risk and protect their assets. Therefore, we employ a value approach to investing.

The philosophy that guides the management of our equity and balanced portfolios is built on traditional principles. We maintain a long-term focus, conduct our own research and employ a rigorous price discipline. Our decision making process takes full advantage of individual insights within a partnership-oriented culture. These facts drive the achievement of the competitive returns we seek for our clients and their portfolios.

We think “benchmark risk” is part of investment life. Our firm’s goal is to earn good absolute investment returns over long periods of time without exposing our clients’ capital to undue risk. We do not think about any particular index when we make investment decisions. We also believe that cash is sometimes the most attractive investment. We know this approach causes headaches for some of our favorite consultants, but we think flexibility and common sense will continue to serve our clients well over the years.

We will discourage short-term speculators and market timers from joining us and will communicate with our investment partners as candidly as possible.

St. James

Investment Advisors

“Holding cash is a way of safely doing nothing until a compelling investment opportunity arises. Cash offers the virtues of positive yield, complete safety of principal, and full and instant liquidity.”
— Seth Klarman, Margin of Safety


“An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
— Seth Klarman


“While we don’t like having excess cash, we like doing dumb things even less.”
— Warren Buffett