Investment Options

Separate Account Program

The GoodHaven Separate Account Program (GSAP) manages investment accounts in excess of $1 million for individuals, corporations, and other entities using focused investment research and a concentrated portfolio management approach.

A normal portfolio will hold about 10-25 securities, and a single security may equal up to 25% of the account’s value (measured at the time of purchase), although we expect such deep concentration to be rare. However, a significant part of an account’s value is expected to consist of just a few securities, a strategy often described as “non-diversified.” To the extent we are unable to identify undervalued securities, cash or equivalents may comprise a significant portion of account holdings until such time that investments meeting our criteria reappear. Patience is a virtue.

The GoodHaven Institutional Separate Account Program (ISAP) manages accounts in excess of $25 million for corporations, ERISA accounts, and other qualified institutional entities using focused investment research and a concentrated portfolio management approach, and will utilize additional investment and risk-management strategies beyond those employed by GSAP.

These may include somewhat greater diversification than a GSAP account, the ability to buy stressed or illiquid assets such as “junk bonds”, bank debt, and other securities, and the ability to partly or fully hedge portions of the portfolio. Notwithstanding the above, we expect the bulk of the portfolio to be invested in common stocks, although from time to time we may have cash reserves as described above.