Opportunistic Value Equity
Background:
Knightsbridge was founded as an employee-owned, independent firm on July 1, 1998. The firm’s investment process is implemented through an Investment Committee. John Prichard, CFA, a firm founder and principal, serves as the firm’s Chief Investment Officer. Chad Neault, CFA, serves as Research Manager. The firm’s Investment Committee consists of John G. Prichard, CFA, Chad Neault, CFA, Dhawal Nagpal, PhD and Miles Yourman. This Committee participates in the firm’s ongoing ‘investment anomaly’ 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 12/31/11
(Net of Fees, in %)
Knightsbridge Information
Composite Inception: January 1, 1992
Total Firm Assets: $952 Million
Number of Employees: 12
