“Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
Chairman, Berkshire Hathaway
Silver Pine Capital (SPC) was founded with the goal of providing risk-conscious clients with unbiased, custom-tailored investment strategies to meet both short and long-term goals.
We believe the best way to make our clients money is to first not lose it.
We are careful in selecting investments for our clients and we make sure to fully understand and scrutinize the risks of an investment before deploying capital. Once a portfolio of investments is built, it is prudently managed with a keen eye on maximizing returns while taking on an appropriate level of risk.
SPC’s investment philosophy is to make investments in much the same way that a knowledgeable buyer would evaluate a business for acquisition in its entirety. The business should be easily understood, have favorable long-term prospects, be managed by competent individuals with integrity, and, most importantly, be available at a price that represents a discount to its intrinsic value.
SPC believes the larger the discount, the less risk the investor assumes, and the greater the “margin of safety”. This approach to investing, first laid down by Benjamin Graham and later championed by Warren Buffett, is widely referred to as “value investing.”
Silver Pine generates its own independent research product. Underpinned by decades of combined investment experience and expertise across various industries, our portfolio managers and analysts focus on examining business fundamentals, financials, management teams, and business strategies as well as performing extensive channel checks. The ability to leverage in-house and unbiased research is a competitive advantage – one that SPC deploys in its efforts to generate superior returns for clients, in all types of market conditions.
At Silver Pine, we’re what is known as “contrarian” investors.
We place little to no value on what the rest of the investment community thinks. This freedom from following the herd allows us to make decisions free from the bias that pervades Wall Street. We aim to build investment portfolios that withstand all types of market conditions, custom-tailored to the individual or institution with the goal of preserving and building wealth over time.
Diversifying through proper asset allocation.
SPC builds diversified portfolios by making direct investments (no mutual funds) across asset classes and industries to ensure prudent diversification, with ultimate flexibility to overweight, underweight, or even eliminate classes or sectors according to the portfolio manager’s forward market expectations.
For smaller-sized portfolios, it’s impractical to make direct investments. Therefore, we utilize low-cost Exchange-Traded Funds (ETFs) to construct portfolios. Over the long term, this strategy is projected to track market returns with the potential for upside from active sector weighting decisions.
Risk-adjusted returns are our focus.
SPC’s Small-Mid Cap Value (SMID) is an equity (stock) strategy focused on producing superior risk-adjusted returns that significantly outperform the peer index, the Russell 2500 Value Index, over time. We build portfolios consisting of 30-45 stocks with little regard to diversification. We believe too much diversification actually leads to market (or index) mimicking returns.
Limiting downside risk while generating acceptable returns.
SPC’s Targeted Return is a hedged strategy whose goal is to limit downside risk while generating acceptable returns. Too many investors own portfolios which can easily be detrimentally affected by market volatility with no or limited downside protection. SPC’s portfolio managers have developed a proprietary strategy for managing this risk, allowing our clients to sleep better at night.
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