We like to buy companies that are expected to grow their revenues/earnings and are fairly valued. We have developed quantitative models to identify great companies. We are long-term investors but we do believe that any company can lose its competitive advantage so we do not hesitate to sell when our thesis changes.

Historically US markets have done really well over a long period but there have been numerous times when investors have seen their portfolio lose more than 20% of their value. When we expect the market to go down we hedge our positions with short ETFs.