In managing our clients’ portfolios, we adhere to quality-based principles and are disciplined in our approach.
At Dorchester our investment philosophy is based on:
- Diversification – We believe in a broad degree of diversification and do not believe in placing big bets on any particular outcome. No matter how attractive the prospects are for a given company, a given industry, or a given country, it is difficult to know for sure to what extent the positive outlook is already reflected in current prices. Unforeseen negative surprises can and do occur. A diversified approach allows for more consistent, predictable long term results.
- Value – Our discipline, patience and research efforts allows us to maintain a strong understanding of the companies that we own all the while keeping our focus on undervalued securities.
- Quality – The vast majority of our portfolios are comprised of mid to large capitalization, high quality securities. This is true in the equity component and also on the fixed-income side where we do not believe in lowering our quality standards in order to reach for some additional yield. We will, from time to time, take a smaller position in unique opportunities that present themselves that are more junior or speculative in nature where the risk/reward ratio appears especially attractive.