“The great personal fortunes in this country weren’t built on a portfolio of fifty companies. They were built by someone who identified one wonderful business.”
No. 5 from “The Tao of Warren Buffett” by Mary Buffett & David Clark
The Aberdeen Investment Strategy
Aberdeen believes the correct strategy to capture the potential upside is one of long term investment predicated on a thorough investigation of the target investment’s business model, addressable market, competitive strengths and weaknesses and intellectual property. The targeted 3 to 5 year returns are 3X to 5X the original investment.
The Aberdeen strategy is to recommend relatively concentrated investments to maximize returns. The strategy focuses on no more than 10 active recommendations at a time.
The strategy entails minimal turnover. Positions are to be assembled over an extended period to achieve the lowest cost basis possible.
Consistent with a philosophy of a long term investment horizon and minimal turnover, Aberdeen is compensated principally on performance. Aberdeen’s preference is to directly manage positions for its clients by exercising discretionary authority on individual client accounts. In such cases an asset based fee is also charged.
Aberdeen employs disciplines its management team has developed and performed over a 30-year career in the direct management of investments in both public and private companies.
Uniquely, Aberdeen does not require investors to lock up their capital in a hedge fund structure in order to participate.