Her strategy of looking for quality businesses selling at discounts has paid dividends to investors over both the long and short term. But whichever way you slice it, the fund has outperformed with noticeably less volatility. Edited excerpts of the conversation follow. You would notice that the yield is higher than the broader market, which points to the fact that it is a value focused fund. You would also find a lot of emphasis in typical value sectors, like utilities, financials, and energy, as well as very little exposure to technology to date.
Investors talk about deep value and relative value.
We don't want to rely too much simply on cyclicals and financials, which is what a lot of people associate with value investing. We cast our net wider and have probably made more liberal use of energy than some of our peers too. We are not afraid to own health care, like the pharmaceutical stocks, when they are cheap. However, we have a real quality bias in the fund. We are not looking for distressed companies on the verge of going bust, but good basic businesses and quality companies.