PHILOSOPHY

SFE follows the markets, but we invest in companies

Top Down

SFE’s overall investment philosophy is straightforward: We strive to balance appropriate risk with our obligation to protect and grow our clients’ assets and purchasing power. Our core competence is managing concentrated portfolios of US-listed equities, sometimes with a fixed income component, that are customized to meet specific client risk/return objectives. We opportunistically pursue excess returns across sectors and market caps, and believe strongly that enlightened, forward-thinking management is critical to the long-term success of any business.

Bottom Up

SFE takes a ‘total return’ approach to managing portfolios, which combines income producing equities with carefully identified growth opportunities. As value investors, we look for sound cash-based fundamentals including free cash flow, returns on invested capital and balance sheet strength. We identify companies with competitive advantages that are well established and intrinsic to the operating model. Our ability to identify income and growth stocks that have attractive business models within healthy sectors allows us to generate excess returns with less volatility.