The JC Clark Preservation Trust seeks absolute return on capital through a classic long/short hedged style.
The Fund invests primarily in North American equities and stresses hands-on fundamental research.
The Manager seeks to execute a focused investment strategy by keeping the number of positions relatively low and over-weighting the very best investment ideas. Security selection is the primary focus as the Manager attempts to buy high quality companies trading at significant discounts to their intrinsic values and short businesses with weak fundamentals, poor management and aggressive accounting. The Manager performs significant internal due diligence on all investment ideas.
The Manager will generally employ a "value-based" strategy, focusing on the fundamental characteristics of individual companies. Through a rigorous "bottom-up" research process the Portfolio Manager and other members of the investment team will focus on fundamental business and industry analysis. Long and short positions will typically be outright and distinct in nature rather than as a hedge to one another. Hedging will be done at the overall portfolio level, and periodically at the sector level. The Manager may employ index futures or exchange-traded funds to assist in this portfolio hedging process. While the Manager will moderately adjust the funds overall net market exposure from time to time, the general focus will be on security selection, rather than market timing.
The Preservation Trust maintains a variable bias with a net exposure that is generally less than 40%. The Fund invests in a wide variety of equities and sectors to manage risk.