Investment Philosophy

Distinguishing Features and Investment Discipline

At the core of IFR's investment philosophy is the belief that investment in a company is an investment in management and the resources at their disposal. In keeping with this philosophy, we seek to invest in companies with good management and a leading position in their respective markets. Looking to capitalize on misplaced negative market sentiment, we typically look to initiate new positions in out of favor industries or companies. We build up participation in sectors and companies we believe offer above average risk adjusted growth prospects.

Another relevant factor to our investment style is that we do not have a capitalization bias. We consider ourselves a mid to large cap manager, however, we will buy small companies when earnings visibility and value parameters warrant. We feel this flexibility gives us the best possible opportunity to find those investments which may perform well, even in volatile markets. We believe that our investment style may offer clients more resistance in a down market scenario.

IFR is particularly sensitive to attempting to produce growth without subjecting a portfolio to unnecessary risk. We focus on quality companies with historical records of achievement. Our stock universe is reduced from 150 to 200 companies to 40 to 50, from which we make portfolio selections on a price/valuation basis.

Resulting portfolios generally consist of 20 to 30 positions that are well diversified among industries. Positions are typically held for not less than 18 months. Generally, we seek to establish positions in companies with strong long term growth potential. Annual turnover is relatively low for our style of investment. Individual security selection focuses on companies with the most compelling valuations based upon dominating and emerging market factors, as well as fundamental analysis.

IFR does its own independent research. The firm has developed a proprietary methodology to determine risk adjusted value. IFR looks at market dynamics and key financial ratios to determine reasonable company valuations.

Key Features

• Equity manager, utilizing all-cap investment style
• Growth at reasonable price strategy
• Tax efficient portfolios
• Independent Research and Analysis
• Low turnover investment strategy

IFR's investment style is to buy growth-oriented companies where the risk adjusted value exceeds the market price of the security.