We view stocks and bonds, at their most fundamental level, as claims against the assets of a company. The value of a company then, depends on the value of both its assets and the claims against them. These corporate assets can include anything from operating businesses to real-estate holdings, natural resources to patents, royalty rights to cash to interests in other businesses.

We believe that controlling these assets at compelling valuations will create attractive returns over time. Using this as a foundation we created a process to gain a claim against these corporate assets at a discount to their underlying value. The logic of this method is straightforward: when valuations are compelling there is less downside risk and a better chance of meaningful capital appreciation; when the assets are high quality, opportunities for performance increase and limit the chance that value will go unrecognized.