Growth and Value Strategy
Capital Appreciation, All Cap, Anywhere, Long Term Horizon
Objectives: Long Term Capital Appreciation
Strategy: Growth, Value or a combination of both. Long Only Equities, Non-Leveraged
Fortunato 1 focuses on long term capital appreciation through growth and value equity opportunities from all sectors, sizes and geographic regions. We look for equities with superior growth and value characteristics often in out-of-favor industries or geographic regions. The fund is an actively managed and may hold highly concentrated positions in equities to establish superior returns over time. Any percentage of the fund may be held in short term liquid assets (cash) at any given time.
Characteristics of Fortunato 1:
- Own between 8 and 30 stocks (or funds or ETFs in the case of some foreign markets) at any given time, concentrating allocation on the best ideas, and enabling better coverage of those ideas
- Long term ownership horizon goal. The Fortunato 1 purchase equities with a long term horizon, but may sell short term if 1) the opportunity deteriorates, 2) the equity approaches or exceeds our best estimate of fair value
- Flexibility in the percentage of each stock owned. The Fortunato 1 strategy may hold a concentrated amount in one or more stocks in order to attempt to optimize returns
- Fortunato 1 strategy holds a percentage of cash based on our proprietary market valuation formula. By keeping these percentages of cash available, we are able to take advantage of market downturns and forced selling during corrections.
- Fortunato 1 is comprised of either value oriented equities, growth oriented equities or a combination of both
- Stocks (or funds) of any size, sector, situation, or country may be purchased and held in the fund, allowing the maximum flexibility to find the best opportunities
- Free Cash Flow
- Return on Invested Capital or Return on Equity
- Sustainable Growth
- Durable Competitive Advantages
- Management Strength
- Balance Sheet Strength
- Valuation Criteria
We focus on finding exceptional businesses with quality management whose stocks are selling at attractive valuations. "Quality” business may take on many forms and definitions. Our research focuses on finding businesses that are priced at a discount based on our propriety valuation criteria and therefore have favorable near and long term prospects for appreciation.
Inception Date: 08/01/13