We are generalists by mandate and specialists by preparation. A TJF portfolio moves between these four expressions of capital as price demands, not as a policy document dictates.
Ownership, at a price that forgives error
We buy businesses we would be content to hold unquoted for ten years, at prices that assume we are somewhat wrong about them. Eighteen to twenty-four positions, concentrated in the top ten. No index awareness, no sector quotas, no obligation to own anything.
Duration is a decision, not a default
Sovereign and highest-grade corporate paper, held to fund known liabilities and to be genuinely liquid when equities are not. We take duration risk deliberately and credit risk sparingly. We have never owned a structured product we could not price ourselves.
A hedge against being wrong about everything else
Gold principally, energy opportunistically. This sleeve is not held to outperform. It is held because the other three sleeves share a hidden assumption — that institutions remain orderly — and we are unwilling to make that assumption without a counterweight.
Where price and process diverge
Demergers, delistings, open offers, forced selling by mandate-constrained holders. Returns here are driven by a dated event rather than by a market view, which makes this the one sleeve whose timing we can actually underwrite.
Which of these matters most depends entirely on what the capital is for. That is the first thing a partner will ask you.
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