Business values are dynamic in nature. Since both a company and businesses can continue to grow as long as they have a strong balance sheet and are well managed, close monitoring of these metrics is crucial.

Criteria to sell a position usually consists of a conversion activity such as mergers, acquisitions, spin-offs, restructurings, management buyouts, assets sales, and other activities. However, the more typical catalyst for a voluntary sell from the portfolio in the open market would include factors, such as:

• the company becomes grossly overvalued in the open market,
• the company appreciates and becomes excessively overweighted in the portfolio,
• the business conditions change for the company,
• management was given too much credit,
• there has been an impairment to the intrinsic value of the company, or
• our original analysis and/or idea was flawed.

Therefore, these criteria typically provide the portfolio with a very low turnover and long holding periods.  This reduces cost and is tax advantaged over long time periods.