We remain positive on stocks, but believe, as always, that stock selection will be critical. The recent decline in interest rates and commodity prices are good for equities, both with respect to earnings growth and valuation and our portfolio should benefit. We continue to focus on small and medium-sized growth stocks that have an important market share, strong balance sheet and are well managed.
Our investment strategy is unchanged. We continue to seek out-of-favor companies that have defensible positions in their industries, strong or improving balance sheets, reasonable valuations and good prospects for earnings growth.We believe that over the long term this strategy will continue to outperform. In our opinion the portfolio is well positioned, reasonably valued and diversified. We hold sixty-three positions, representing twenty-six industry groups. We continue to invest in companies of all market capitalizations and our largest areas of concentration are technology, real estate and financials. We currently monitor, but don’t yet own, a number of solid companies that sell at reasonable valuations. The outlook for our approach, in our view, is favorable at this time.
During the quarter we purchased shares of Alltel, Annaly Capital Management, Bunge, Dionex, Dynegy, Everest Re Group, Liz Claiborne, Rent-A-Center, Universal Corp. and Zebra. We sold our shares in Conseco, Greater Bay Bancorp, Host Hotels&Resorts, Powerwave, Tellabs, Time Warner and Valassis.
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Our investment strategy is unchanged. We continue to seek out-of-favor companies that have defensible positions in their industries, strong or improving balance sheets, reasonable valuations and good prospects for earnings growth.We believe that over the long term this strategy will continue to outperform. In our opinion the portfolio is well positioned, reasonably valued and diversified. We hold sixty-three positions, representing twenty-six industry groups. We continue to invest in companies of all market capitalizations and our largest areas of concentration are technology, real estate and financials. We currently monitor, but don’t yet own, a number of solid companies that sell at reasonable valuations. The outlook for our approach, in our view, is favorable at this time.
During the quarter we purchased shares of Alltel, Annaly Capital Management, Bunge, Dionex, Dynegy, Everest Re Group, Liz Claiborne, Rent-A-Center, Universal Corp. and Zebra. We sold our shares in Conseco, Greater Bay Bancorp, Host Hotels&Resorts, Powerwave, Tellabs, Time Warner and Valassis.
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