Our investment philosophy is largely guided by the principles of behavioral finance. Most modern economic theory assumes that individuals act rationally, whereas behavioral finance suggests they do not. Investors who are able identify these moments of irrational behavior have the opportunity to profit from them. We believe, when the majority of participants in the market are acting in a similar fashion, their behavior is likely to be proven wrong at some point in the future. Accordingly, the behavior of market participants influences the level of aggressiveness for our strategies at any given point in time.
Contrarian mindset: We take a contrarian point of view when it comes to searching for investment ideas. It’s often in the most beaten down, overlooked or chronically ignored areas of the market where we find the most compelling investment opportunities.
Focused risk control: We believe that preservation of capital is an essential component of durable, long-term investment success. Compound interest, while powerful, is less effective if you experience years with large losses. Our approach demands a margin of safety on multiple levels before we proceed with any investment.
Original research: We believe that lack of attention and professional analyst coverage of securities is what creates persistent pricing inefficiencies. We seek to build an informational advantage by performing our own thorough, fundamental research on under-the-radar securities.
Value: We seek out companies which we believe are value-priced and have the potential to be viewed by other investors as growth enterprises based on existing, yet unrecognized financial characteristics.
You are leaving Punch & Associates’ website, and are being redirected to the Black Diamond Link reporting platform offered to Punch & Associates’ clients. Black Diamond Link allows you to consolidate the components of your personal net worth in a single location.
Punch & Associates is not affiliated with Black Diamond Link, and as such cannot guarantee the accuracy of information presented, the platform’s functionality, or the level of security associated with the Black Diamond Link platform. While Punch & Associates considered the security features of the Black Diamond Link platform before offering it to clients, Punch & Associates assumes no liability related to your use of the Black Diamond Link platform.
By advancing to the Black Diamond Link platform, you acknowledge that you have considered the above disclosure. Please contact your Punch & Associates relationship manager with questions.