Portfolios of our Core Strategy are constructed within the following framework:
- Long only U.S. listed equities
- Typically 10-15 positions
- Typically 8-12% position sizes
- Max position size 12% of portfolio value (at the time an investment is made)
- No sector or market cap restrictions
- Above average, long-term absolute return target
- No leverage
- No shorting
- No options
- Hedging: holding cash as necessary
We strongly discourage prospective clients from investing capital with Rational Investors that cannot be committed for at least three years and ideally five years.