Opportunistic Value Equity
Background:
The firm was founded as an employee-owned, independent firm on July 1, 1998 by Al Beimfohr and John Prichard, CFA, who have managed the Opportunistic Value Balanced product since the firm’s inception. Al and John are supported by John Kittrell, PhD and Chad Neault in their research efforts. Knightsbridge personnel commit personal and retirement capital to the same stocks as clients.
Investment Philosophy/Process:
Knightsbridge strives to perform in all market and economic environments. The firm, in its emphasis on ‘absolute returns’, invests opportunistically without regard to index characteristics and, where permitted, at times uses cash as a defensive tool. Knightsbridge believes that excess returns can be generated by exploiting investment anomalies or disruptive events that it believes have caused a company’s stock to become temporarily undervalued. Anomalies utilized are security specific and can be characterized by investor overreaction, forced turnover of the shareholder base, structural occurrence and a lack of available information. The investment team has conducted internal, statistical studies and references academic research that provides a rationale for anomalies utilized and they feel confident that these market inefficiencies will continue to be present in the future.
The firm believes that risk and return can be better balanced by concentrating among their best ideas in client portfolios. Stock purchases, as the result of the presence of an investment anomaly and being out of favor, neglected, and/or controversial, are
deemed to be priced at a significant discount to historical company and anticipated peer group valuation levels. Portfolio holdings range across market capitalization. Stocks are purchased only when the firm believes an 80% to 100% investment return is probable over a three year holding period.
Composite Investment Performance as of 6/30/10
(Gross of Fees, in %)
Knightsbridge Information
Track Record Inception: January 1, 1992
Total Assets: $1.3 Billion
Number of Employees: 15
