First Quarter 2013 Update: The Art of Fugue

The Art of FugueIn the third quarter of 2012, I wrote about our investing process in the letter titled Inventing a Flying Machine. I discussed the importance we place on pilot control (manager skill) and wing design (process) over what seems more common, an increase of horsepower (legions of analysts). The letter highlighted the concept of soaring, how we source lift or quality investment ideas, how we take each investment idea through an initial checklist, and how we categorize the magnitude of performance we expect from those ideas (thermals, ridge lift, and lee waves) to size the position appropriately… View PDF »