Lesa Sroufe & Company has a value and contrarian investment philosophy. Our equity selection is based on our company analysis and the security's relative value compared to other investments. We take into account investor psychology towards sectors and individual stocks in our effort to expose investment opportunities. By focusing on out-of-favor sectors and individual stocks, we seek to reduce risk while pursuing reasonable growth and preservation of capital.
- Equity prices tend to overshoot fundamental or instrinsic business value to the upside and downside.
- Apply a rigorous valuation framework to companies and sectors through extensive analysis.
- Seek a significant margin-of-safety in prices versus intrinsic business value.
- Balance appropriate diversification and concentration with a focus on overweighting areas of perceived opportunity.
- Move across sectors, geographies, and themes swiftly as opportunities present themselves.
- Invest in 25 to 35 individual stocks.
- Average portfolio turnover approximates 25-33% per year.
- Establish a disciplined framework for entering and exiting positions.
- Set price targets when a position is initated.
- Upon reaching the price objective, review the fundamentals to determine whether to sell or raise the price objective.