INVESTMENT PHILOSOPHY
Bedlam manages unconstrained, concentrated portfolios of companies and thus avoids the artificial and backward-looking constraints of index weightings. Through disciplined adherence to their team-based investment process, Bedlam seeks to strip out emotional bias, minimize risk and ensure returns are repeatable.
The catalysts behind a company's key earnings drivers (never more than six) are identified through valuation and thematic screens, together with rigorous in-house modeling. A strict target price discipline is operated. Stocks for purchase are identified with a minimum under-valuation of 20% based on two-year earnings forecasts. Bedlam is looking for holdings with the following characteristics: compelling valuations, strong free cash flow, sustainable franchises and clearly identified catalysts.
Concentrated portfolios hold 30-50 stocks. Appropriate risk controls are in place to avoid excessive concentration by region, country or sector. | 
