Investment Philosophy
Aletheia is the classical Greek word for “truth and disclosure,” of bringing facts into the open, and the firm’s Investment Philosophy is built upon a foundation of truth, empirical data and an avoidance of both traditional information channels as well as the consensus approach to investing.
Aletheia’s Investment Philosophy is a high-conviction, evidence-based approach that is characterized by the following:
Research discipline that identifies opportunities in advance of market recognition
- Proactive, rather than reactive
- Relentlessly forward-looking
Avoids the “bad information loop”
- Does not rely on traditional channels of information
- Does not seek “guidance” from management or “the Street”
Avoids relative thinking
- Benchmark and sector agnostic
- Thinks in terms of individual companies, not groups
Uncovers individual companies with the most outstanding opportunities
- Based upon fundamental, bottom-up analysis
- Every investment idea must stand on its own
- No top-down screening to “narrow the universe”
We do our own work, rely on our own experience and judgment, and stand behind our decisions regardless of market sentiment.
While each strategy differs in its application of investment criteria and portfolio construction, Aletheia uses the same philosophy and process to identify investment opportunities for all of its investment strategies.
Aletheia believes that correct investing and ultimate investment success depends upon discovering what is discoverable about corporations and their secular earnings prospects and applying this knowledge astutely. Aletheia does not use Wall Street research nor does it rely on "guidance" from either corporate investor or public relations personnel. Rather, the firm employs hard data, primarily insider and corporate actions, forensic analysis of balance sheets and cash flows, and non-biased industry research corroborated by Aletheia’s independent research advisors, to guide its investments, all with the aim of producing superior results.
At Aletheia, we do not replicate any index or benchmark. Our portfolios demonstrate a healthy deviation from the index; but always towards greater safety and better risk-adjusted returns, not greater risk.