Greenhaven Associates Inc

Greenhaven manages discrete, discretionary equity portfolios for a mix of individuals, trusts, foundations, pension plans, IRAs and endowments. In addition to these traditional clients, the firm also advises certain institutional clients — including sovereign wealth funds, banking or thrift institutions, and other investment advisers — overseeing roughly $11.66 billion for about 100 clients with a four-person investment team.

The firm follows a value-oriented, buy-and-hold equity strategy that seeks undervalued common stocks across sizes, industries, and geographies, typically looking two to four years ahead and maintaining relatively concentrated portfolios (commonly 12–25 positions). Investment decisions are made on a discretionary basis after proprietary research by the portfolio managers, who regularly meet with company management and industry contacts, and employees commonly invest alongside clients.

Noteworthy features include that accounts controlled by the firm’s principal and his relatives represent a large share of assets (historically about 60% of AUM), which can lead to larger aggregated orders, different concentration or cash-reserve profiles for family versus non-family accounts, and potential conflicts clients should consider. The firm also applies performance-based incentive fees across its fee-paying accounts (removing class-based incentive conflicts), uses a soft-dollar arrangement for certain research services, and has adopted execution practices — including dark-pool trading relationships — intended to limit front-running and improve execution.