We believe an investment should be considered the purchase of business rather than the purchase of a security. Timucuan aims to capitalize on disparities between the quoted price of a security and its intrinsic business value, when such value is unrecognized. This approach is designed to permit us to take advantage of market inefficiencies, short-term constraints among market participants, or investor misperceptions which result in the undervaluation or overvaluation of public companies. Timucuan’s philosophy is further characterized by the following principles:
We consider a long-term investing horizon to be a critical factor in attaining superior investment results. Timucuan evaluates a company’s prospects over a multi-year period and bases decisions on an assessment of intrinsic worth within this time frame. We accept quotational fluctuations in stock prices in pursuit of growth over the long term.
Concentrated Portfolio Holdings
Our portfolios are concentrated in 12 to 18 positions. We believe that the depth of our research process mitigates the risk of misjudging a business’s prospects and the nature of our concentrated holdings allows each position to have a meaningful impact on portfolio results.
Non-Restrictive Opportunity Set
We do not manage portfolios with a benchmark in mind and are not constrained by company size, industry, location, or growth profile in our search for qualifying investments. Our investment decisions are not predicated on an overall market view.
We define risk as the permanent loss of capital. We aim to minimize this risk by focusing on businesses that fall within our areas of expertise, and by requiring a margin of safety in each investment as represented by a favorable price-to-value relationship.