The BBH Core Select mutual fund has a differentiated approach to investing in equities that is based on the following principles:
The investment objective of the fund is to provide investors with long term growth of capital. The fund seeks to generate attractive returns over time and does not attempt to mirror any benchmark or index.
We approach equity investing with the perspective of owning fractional shares of strong businesses for relatively long periods of time. We base our investment decisions on fundamental analysis of the underlying businesses.
Emphasis on capital preservation
We view risk not as the price volatility of an investment, but instead as the likelihood of a permanent capital loss. To mitigate this risk, we apply rigorous selection criteria and invest only in companies we believe have a significant margin of safety as measured between the purchase price and our estimate of intrinsic value.
Many investment strategies are built around short-term expectations, momentum-following and frequent trading. We believe that a longer-term view of both companies and investments leads to stronger results and risk control over market cycles.
Minimize trading costs and taxes
High portfolio turnover often generates taxable short-term gains and substantial trading costs, both of which can significantly erode the long-term compounding of returns. Our targeted holding period of 3-5 years helps us reduce these costs.
Invest alongside clients
Key principals of BBH have invested personally in the BBH Core Select mutual fund, as well as in similarly managed separate accounts, signifying a high level of shared conviction in the investment strategy and a clear alignment of interests with the Fund's shareholders.
We believe that the strong research and analysis is the primary driver of investment success. Prior to any investment we strive to have a deep understanding of the long-term fundamental characteristics of the business. It is also important to control business risk through domain knowledge, carefully selected investment criteria, and a thoughtful investment process.