Our Investment Approach

Know what you own. Understand why. Have a discipline for what comes next. 


You want your wealth managed with conviction, sound judgment, and the flexibility to respond as circumstances change. 

At FortyOne, we believe long-term investing requires both patience and action. We seek to own great businesses in sustained upward trends, manage risk as conditions evolve, and keep every decision connected to the purpose of your portfolio.

Fundamentals inform what we own.

Technical analysis informs when we act.

Your objectives give the work its direction. 

A long-term perspective. An active responsibility. 

Compounding wealth takes time. Meaningful declines can interrupt that progress and require substantial gains to recover. 

We pursue long-term growth while giving downside risk ongoing attention. We are willing to hold investments as their businesses develop and their value compounds. We are also willing to reduce or exit positions when the investment case weakens or market evidence calls for caution. 

Our process brings together research, portfolio construction, and risk management to guide those decisions. 

The convictions behind our decisions

Great businesses are the foundation

We seek companies with compelling business prospects, competitive strengths, financial resilience, and opportunities to grow. Understanding how a business creates value is essential to deciding whether we want to own it. 

Price & market behavior matter

An attractive business does not automatically make an attractive investment at every price or at every moment. Valuation, price trends, and relative strength help us evaluate the opportunity and the risks of ownership. 

Risk requires attention before and after we invest 

Diversification and position sizing matter, but our responsibility continues after a portfolio is built. We monitor the evidence and remain prepared to act as conditions change. 

After-tax outcomes deserve consideration 

In taxable accounts, taxes affect the wealth available to compound. We consider cost basis, holding periods, and opportunities to realize losses alongside investment objectives and risk decisions. 

Conviction must leave room for humility

We form independent views and pursue them with discipline. We also recognize that markets can challenge our assumptions. When the evidence changes, we reassess. 

A defined process. From research to ongoing review. 

1. Understand the mandate

We begin with your objectives, time horizon, liquidity needs, tax circumstances, and tolerance for risk. 

These establish the purpose of the portfolio and the boundaries within which we invest. Each account is managed with attention to its role in the broader relationship. 

2. Research the opportunity

For individual equities, we examine the business, its financial performance, competitive position, management, growth prospects, and valuation. 

We develop an investment thesis: why we want to own the company, what could drive its value, and what could undermine our judgment. 

For fixed income and complementary funds or ETFs, we evaluate the characteristics, costs, risks, and purpose of the exposure within the portfolio. 

3. Evaluate the timing

We assess price trends, relative strength, volatility, and broader market conditions to inform implementation. 

These signals help us determine whether to initiate a position, add to it, wait for a better opportunity, or reduce exposure. Moving averages and other technical measures provide a consistent framework for evaluating changing conditions. 

4. Construct the portfolio with purpose

We size positions according to conviction, risk, and their contribution to the portfolio. 

We evaluate exposures across companies, industries, and investment themes. For complete portfolios, we also consider how equities, fixed income, international investments, and cash work together. 

The objective is a portfolio whose holdings serve a clear purpose and whose combined risks we understand. 

5. Monitor, act, and learn

We review business developments, investment theses, price behavior, and portfolio exposures. 

We may add when evidence strengthens, reduce when risk increases, or exit when the reason for ownership no longer holds. We remain willing to hold cash when opportunities are limited or conditions warrant caution. 

We review our decisions to improve the quality and consistency of the work. 

Patience with a reason. Action with a purpose.

A falling price can reflect temporary volatility or signal a meaningful change in the opportunity. A rising price can confirm progress or make an investment less attractive. 

Our job is to weigh that evidence through a consistent process. 

We do not expect to identify every market turning point. Risk management cannot prevent losses, and reducing exposure can mean missing part of a recovery. We accept those tradeoffs as part of managing thoughtfully through uncertainty. 

Is our philosophy aligned with yours?

Our approach may fit if you:

  • Want an active manager who can explain the reasoning behind investment decisions.
  • Are comfortable with portfolios changing and cash levels varying as evidence and opportunities evolve.  
  • Value fundamental research alongside attention to market trends. 
  • Can evaluate the relationship over a meaningful period, recognizing that every strategy will experience setbacks and periods of underperformance. 
  • Seek long-term growth while expecting ongoing attention to downside risk. 

Let’s discuss how this approach fits your goals. 

Alignment matters. You should understand how we invest and feel comfortable with the
discipline before entrusting us with your wealth. 

You have seen what we believe and how those beliefs guide our decisions.
The next step is to explore what that could mean for your portfolio. 

We would welcome the opportunity to learn about your objectives,
review your current investments, and answer your questions. 
Start a Conversation