Equity Investment Philosophy
At Intrepid Capital Management, all our investment decisions are dictated by our investment philosophy. For equity management, we believe in financially strong companies that are market leaders in their industries, have a better ability to outperform their peers when catalysts for change exist and they can be purchased at a sizeable discount to their intrinsic value.
Because of our value focus, we concentrate on those opportunities that will allow our portfolios the best risk adjusted returns. The benefits to investors are:
| || Annual turnover is less than 33% |
| || Portfolios exhibit much lower risk than the market and the firm’s peers |
| || The potential reward is disproportionate to the risk |
| || There is a low correlation to the market and to other managers |
| || There is historical outperformance in down markets – and slight underperformance in rising markets |
Fixed Income Investment Philosophy
We believe that high-yield fixed income is well suited to value-seeking investors.
| || High yield can offer a return and income stream that substantially outperforms investment-grade issues |
| || High yield has only a partial correlation to equities, making these securities an effective portfolio diversifier |
Our High-Yield portfolio is managed to provide consistent returns that typically outperform traditional fixed income portfolios and provides investors with:
| || An opportunity to capitalize on high-yield opportunities without excessive risk exposure |
| || A higher income stream than afforded through investment-grade issues |
| || Active risk management |