Philosophy

We are long-term, value-oriented investors. We build wealth by investing primarily in equity securities of good companies run by shareholder-oriented managers. We purchase the securities of these companies when (1) the market price is at a significant discount to our assessment of what the company is really worth and (2) when we expect the value of the company to grow. Securities purchased with such characteristics provide an investor with a margin of safety against permanent loss of capital. We sell when prices approach or exceed our assessment of value or when the value of the company begins to erode.

Mutual Funds

Banyan uses mutual funds to provide specialized asset allocations, such as international or fixed-income exposure, for a balanced portfolio. Funds also serve to accommodate modest-sized, add-on accounts for existing clients.

Key characteristics of the mutual funds we purchase are:

Value-Oriented Investment Philosophy

Banyan seeks out mutual funds whose managers share our long-term, value-oriented approach to investing and have a successful track record.

Low Expense Ratio

Banyan chooses those mutual funds with operating costs that are low as a percentage of total assets. Also, we do not invest in funds that have hidden or back-end charges, although some client capital is invested in a fund with a 2% redemption fee if sold within 90 days of purchase.

Intelligent Currency Risk

When investing in international funds we may utilize those funds that seek to enhance returns by assuming some currency risk.

Fixed-Income Funds Invest for Total Return

The funds we select to meet the needs of our fixed-income clients are those in the multi-sector category. While these funds are chosen to reduce interest rate risk, they are subject to increased specific issue risk and may be more sensitive to changes in the economic cycle.

  • Value investing is simple to understand but difficult to implement.

    — Seth Klarman