Nightingale Investment Philosophy

Tradable assets are almost always mispriced in some way. The confluence of unequally distributed information, different analytical techniques and different assumptions make the collective wisdom little more than an average of millions of opinions.

Acknowledging what you don’t know is a necessity to be a great scientist or a great investor. From our perspective, not knowing with precision what a company’s future cashflows, the right discount rates to use, etc. frees us to focus on what we can identify more clearly. This clarity is the key foundation of our risk assessment, portfolio construction and company research.

With that backdrop, we try to simplify our approach by seeking assets that will serve our clients well.

  • We are generalists – by looking across the entire market, we can focus on the best opportunities that exist rather than pigeon-holing our thinking into finding the best idea from a specific subset.

  • We try to be aware of the major market themes but our process rarely leads us to follow established storylines.

  • Fundamental qualities of financial strength, organic growth and management prudence are important components of what we seek.

  • Portfolio construction is a broad term. We use it to describe how we choose weights of holdings, measure the biases within our portfolio, assess the potential volatility of the portfolio as a whole.

  • We believe that holding a small number of securities where we have assessed the risks provides a safer and more robust portfolio than a broad list that is more difficult to follow.


Schedule a consultation with us today and learn more about our investment philosophy.