Investment Philosophy

At Doherty, we believe that financially strong companies with quality management teams and attractive market positions provide the best opportunity for stable long term growth. The Doherty Philosophy is supported by our disciplined investment process, with a focus on preserving capital and dedicated to achieving client’s long term goals. Our tradition of investment excellence is sustained by maintaining our discipline and seizing opportunity in high quality companies that are trading below their intrinsic value.

Key Tenets of Our Philosophy

1. Preservation of Capital
2. Fundamental Equity Research
3. Value - Purchase below Intrinsic Value

Great Companies...

Doherty’s high quality investment portfolios are built by identifying “Great Companies” through disciplined investment analysis which focuses on key company fundamentals.

Components of our analysis include:

• Industry Position – best in class companies with sustainable competitive advantages
• Stable Business Models – focus on stable cash flows & recurring revenues
• Strong Management – proven execution capabilities and prudent resource allocation
• Solid Balance Sheet – only companies with conservative capital structures
• Catalysts – improving company and/or industry fundamentals; market share stable to growing

... at Great Prices

Our disciplined approach then establishes a conservative valuation for all companies that meet our “Great Companies” criteria.

• Seek companies trading below their intrinsic value based on a variety of valuation methodologies
• Purchases made at reasonable valuations creates a margin of safety for investors and prioritizes capital preservation
• Consistent buy and sell discipline in adherence with our philosophy

At Doherty we take our responsibility as a fiduciary to clients very seriously. Our portfolio management team, which includes 6 CFA Charter holders, performs rigorous fundamental analysis on all the companies we own. The combination of quality companies and reasonable valuations provides a margin of safety when investing client capital. We view risk management as a top priority and will be vigilant seeking returns in a responsible and sustainable manner.

Focus on achieving higher returns with less volatility – investors must be compensated for the risks they are taking

• Build portfolios from the bottom up by selecting high quality companies through our disciplined process reflecting our core philosophy of fundamentals based investing
• Own companies in a variety of industries with exposure across different markets
• Invest in companies; do not ‘speculate’ on stocks or macro events
• Ensure a reasonable valuation
• Constant monitoring of company and industry fundamentals along with valuation dictates when we would add, sell or reduce a position
• Invest in global markets to achieve better diversification and find more opportunities