Investing Style Our PhilosophyGratio Capital adopts a value investing style and adjust it based on client objectives and needs. While other strategies have come and gone, value investing has proven the standard against which all others are measured. Great names from Graham and Dodd to Peter Lynch, Bill Miller, and Warren Buffet have held steadfast to the principles of value investing with great success. What is value investing? It’s about figuring out what an asset is worth and purchasing it for substantially less.
Time HorizonsGratio Capital encourages its clients to adopt a three to five year horizon for assets managed with us. We believe that a patient approach to investing is the most prudent and most rational. While in our view markets may be volatile and irrational in the short-term, over the longer term, the true value of an investment can and will be realized in the marketplace. For this reason we think that short-term investment horizons cannot be effectively managed. View on Market Fluctuations As long-term oriented value investors we believe discipline is required throughout different market environments and fluctuations. As a result, we tend to hold our positions through difficult market environments as long as our view of these assets has not changed. We don’t get caught up in the hype. If we hold strong businesses bought at good prices, we believe we will do well over the long term. APPROACHES TO EQUITY INVESTINGWe encourage our clients to take a patient approach to equities based on a value investing style. Our equity investments will vary based on client objectives, but we focus especially on the following: - Value investments including growing companies selling at value prices
- Contrarian invesments
- Special situations
Key Characteristics of Our Equities Approach - We recommend a 3-5 year investment horizon
- Market cap of investments may vary based on client objectives, although our value approach often leads us toward small cap equity as these tend to be more often mis-priced in the short term
- Turnover rate is low (we don’t make many trades), though no specific number is targeted
While we will create overall investment strategies for clients based on individual needs, below are three common approaches to equity that we take and the client profiles associated with them. | 
