Contact Round Hill
For more information about investing with Round Hill, please contact us.
Address:Round Hill Asset Management
180 South Lake Avenue
Pasadena, CA 91101
About Round Hill
Round Hill Asset Management is an investment management firm (RIA) serving both individual and institutional investors. We invest primarily in publicly traded stocks of U.S. and multinational companies.
Round Hill Asset Management was founded in 1986 by Channing T. Lushbough. The firm's principal investment objective is to achieve the highest rate of return that is consistent with the preservation of capital. Our investment approach is based on concepts popularized by the late Benjamin Graham and expanded by his students such as Warren Buffett. We invest in securities that we determine to be mispriced according to our appraisal of the issuing company's intrinsic value. We define intrinsic value as the estimated value a company's shareholders would receive if a company were acquired, merged or liquidated in a friendly, negotiated transaction. We arrive at this intrinsic value through careful research and analysis of the available information about a company's fundamental economic and financial situation. This includes not only the company's financial statements and estimates, but also independent analysis of the prospects for the company's industry and the company's competitive position.
We firmly adhere to the "margin of safety" and "intrinsic value" concepts that Benjamin Graham described in detail in his books, Security Analysis and The Intelligent Investor. We also believe, as Graham did, that an investment portfolio should not only consist of stocks deemed mispriced, but of fixed income securities as well. Although our investments are predominantly in stocks we consider undervalued, we also invest in bonds for clients, and may occasionally invest or trade in other types of securities, including, but not limited to, preferred stock, warrants, options, and other instruments. We may also occasionally pursue opportunities in arbitrage, junk bonds, short sales, or any situation in which we perceive the potential for an attractive return at an acceptably low risk.
Tactical Asset Allocation
During periods in which the stock market gets too optimistic, undervalued stocks can be few and far between. In these periods, we increase our holdings in high-grade fixed-income securities and other securities that are likely to hold or gain value during a stock bear market. Conversely, during periods in which the stock market gets too pessimistic, our holdings will be almost entirely in stocks. This approach does not fit nicely into an institutional style box such as "Small-Cap Value", "Intermediate Bond Fund", or "Large-Cap Growth", but we firmly believe that this approach leads to higher rates of return over long periods of time.