FPA Way


Mission Statement

We aim to be recognized as a leading practitioner of value investing. We seek to offer our clients a prudent place to invest their capital, and to provide them index-beating returns over the long-term, while emphasizing preservation of capital. We also seek to foster a culture of excellence, to maintain high ethical standards, and to adhere to our Core Values.

Value Investing

Investment Philosophy

We are dedicated to value investing. When we invest a client's money, we insist that our assessment of the intrinsic value of the investment exceed the price we pay by an amount that provides a reasonable margin of safety. At all times we maintain a focus on minimizing the probability of permanent capital impairment.

Performance

We seek to provide leading rates of return, compounded over time. We recognize and accept that we will periodically underperform indexes and other managers, as poor relative performance for shorter periods is an inevitable part of achieving our longer-term goal.

Due Diligence

Solid research is the foundation of our success. We depend on an accurate, timely, and deep understanding of our investments. We are committed to gaining this understanding based on fundamental research, hard work, and intellectual rigor. We will remain open to alternative views and new information, and aim to prevent biases from clouding our judgment.

Intellectual Independence

We form opinions and build conviction based on our own proprietary efforts. We do not rely on validation from the broad investment community to justify our point of view and may, at times, hold investments that are contrary to general opinion, widely unloved, and possibly deeply disliked. We are willing to embrace a non-conforming point of view.

Co-Investment

We treat our clients' capital as our own, because much of it is. Partners invest alongside our clients and have a majority of their investable net worth committed to the firm's products and investments. We encourage all other members of the firm to invest similarly.

Culture

Commitment to Excellence

We are committed to excellence in all endeavors. We believe that hard work, preparation, effort and diligence promote success.

Integrity
  • Professional — We invest our clients' assets with these Core Values in mind. We place our client's interests above our own. We focus on our investing efforts, rather than asset gathering. We will not expand our business unless we are comfortable that our client's interests will not be harmed. We will restrict access or close our products (as we have in the past) if we believe that will benefit our existing clients.
  • Personal — We are mindful that what happens outside the firm can/will reflect on the firm, and that our conduct must reflect well on the firm.
  • We act responsibly, managing our personal finances so they do not detract from our professional efforts and/or lead to sub-optimal investment or business decisions.

People

We aim to hire and retain the best personnel, treat them fairly, and provide appropriate recognition for consistent success. We seek to cultivate an environment of mutual respect for all Partners, Employees, and Clients.

Ownership Mindset

We endeavor to foster an ownership-mindset among our Partners and Employees because we believe owners make better decisions, put forth a greater effort, and manage superior organizations.

Teamwork

We work together. We challenge each other, collegially. We try to take the most appropriate action with respect to the firm, an investment, or investment process, regardless of where the idea originates.

Leadership

We aim to lead by example.

Mistakes

They will happen. When they do, we...

  • Own them, publicly if necessary.
  • Learn from them.
  • Don't repeat them.

Communication

We seek to communicate to our clients openly and honestly, striving to provide the information we would wish to have if our roles were reversed.

Reputation

The firm's reputation is our most important legacy. We will do all we can to maintain or enhance it.