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INVESTMENT STRATEGY

Investment Strategy: Feature

While BAM invests across market capitalization/sectors, it typically specializes in the media/telecom, financial service and consumer discretionary sectors. BAM spends considerable time focusing on international names outside the US. BAM is comfortable owning names that are underfollowed or underowned because of perceived complexity issues.  BAM typically focuses on investing opportunities and special situations with documented inefficiencies including spinoffs, bank/thrift conversions and the Liberty Media complex.

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While the exact targeted return will vary by investment, BAM typically seeks securities offering 15-20+% internal rate of returns (IRRs).

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Concentrated

Value Strategy

  • 12-20 total names

  • Top 10 names 50-70% of total portfolio

  • 3-5 year holding period – tax efficient investment process

  • Hold cash when attractive opportunities unavailable

  • Position limit of 20% in one single name

  • Volatility creates opportunity:  Risk=Permanent Loss of Capital

  • Maintain active dialogue with management teams

  • Detailed financial models on all investments

  • Invest personal capital alongside clients

In BAM’s investment decision making process involves a number of different factors, not just those discussed in this document.  The views expressed in this material are subject to ongoing evaluation and could change at any time.   Past performance is not indicative of future results, which may vary. The value of investments and the income derived from investments can go down as well as up. It shall not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities mentioned here. While BAM seeks to design a portfolio which reflects appropriate risk and return features, portfolio characteristics may deviate from those of the benchmark. Although BAM follows the same investment strategy for each advisory client with similar investment objectives and financial condition, differences in client holdings are dictated by variations in clients’ investment guidelines and risk tolerances.  BAM may continue to hold a certain security in one client account while selling it for another client account when client guidelines or risk tolerances mandate a sale for a particular client.  In some cases, consistent with client objectives and risk, BAM may purchase a security for one client while selling it for another.  Consistent with specific client objectives and risk tolerance, clients’ trades may be executed at different times and at different prices.  Each of these factors influences the overall performance of the investment strategies followed by the Firm.  Nothing herein should be construed as a solicitation or offer, or recommendation to buy or sell any security, or as an offer to provide advisory services in any jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.  The material provided herein is for informational purposes only. Before engaging BAM, prospective clients are strongly urged to perform additional due diligence, to ask additional questions of BAM as they deem appropriate, and to discuss any prospective investment with their legal and tax advisers.

©2017 by Brennan Asset Management, LLC  | Napa, California

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