Purchase Discipline – Equities
- Purchase prices determined
- Stocks typically are purchased in 3 to 4 tranches using limit orders averaging down
- Internal limit of no more than 3.5% of a portfolio’s market value by
initial investment as a “full” position for any individual investment.
Sell Discipline – Equities
Stocks are generally sold using limit orders in multiple tranches averaging up.
Stocks are sold gradually when:
- Expected investor recognition occurs and stock moves upward
- Downside risk appears