Omega Advisors, Inc.

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Investment Approach and Philosophy

We are value investors based on deep fundamental research

While analysis of so many variables increases the chance of data overload and confused decision-making, we have found in many years of investing experience that successful investing requires an ability to avoid losses in bear markets.  It is through thorough analysis of numerous economic data and valuation screens, as well as experienced investment judgment, that we can succeed in achieving the appropriate assessment of the risk characteristics of the investment environment.  In short, we want to accept investment risk when it is both appropriate and compensated for in the market's price structure. 

After determining our investment outlook, we then concentrate on the asset allocation decision.  Arriving at an appropriate asset mix requires a detailed understanding of a number of factors, some macro in scope and others more portfolio-specific.  The key inputs to our asset mix decision include our overall assessment of the investment outlook, and an analysis and valuation of the various financial alternatives (stocks, bonds, commodities and cash) that are available to us.  As stated earlier, stocks are high-risk financial assets and short-duration bonds and cash are low-risk financial assets.  We take investment risk when we believe markets are undervalued and likely to rise, and we are defensive when our analysis indicates inadequate returns for risk-taking.