Summers Value Partners screens for misunderstood and undervalued companies across the healthcare sector and other related non-cyclical industries including animal health and consumer health – select areas where we understand the economic drivers of the business. We are willing to look in segments of the market where other managers won’t or can’t, including illiquid stocks with market caps under $100 million. We believe that a concentrated portfolio of small and micro-cap stocks identified using traditional value-based rules in combination with a robust research process can outperform the broad market over a full investment cycle of seven to ten years.
“In investing, what is comfortable is rarely profitable”
Core tenants of our philosophy include:
- Size. We are committed to keeping the partnership small and the opportunity set large.
- Diversification. We intend to hold a portfolio of no more than 15 high quality companies on the long side and no more than five stocks on the short side.
- Bureaucracy. We have an investment committee consisting of one person.
- Activity. We intend to hold our stocks for the long-term (three to five years), limiting trading costs that can negatively impact net performance.
- Scope. We stay within our circle of competence, investing in companies or industries where we understand the key economic drivers.