We pursue a long-term, low-turnover approach to investing. Most of our portfolios hold individual securities from both U.S. and non-U.S. markets that we select through our own research and careful bottom-up fundamental analysis. We invest across the market capitalization spectrum and pay careful attention to portfolio construction and diversification.
For smaller portfolios, we use broad-based, low-cost mutual funds to achieve sufficient diversification and global exposure.
We are value investors. This means that we look for assets that are temporarily out of favor and priced well below their fair value. When we find compelling value and make a purchase, we are patient about giving undervalued securities time. Because we are long-term in our thinking and believe that undervalued assets eventually return to their fair value, we care little about day-to-day price fluctuations and avoid rapid trading.
We cull investment ideas from multiple sources. We read widely and conduct securities screens for potential investments. We then conduct deeper evaluations of potential ideas and place those we find most compelling on our approved list. The approved list is reviewed weekly and allows us to build different kinds of portfolios according to client objectives. Individual client portfolios are reviewed by an investment partner on an ongoing basis.
We are value investors. Value is defined as buying securities cheap relative to earnings and assets. This contrasts to growth where buyers are willing to pay a high price for companies with fast growing sales and earnings.
For continuous supervision of investment portfolios, Hanson & Doremus charges a fee based on assets under management. Details are available on the Fees & Performance page of our site.