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We are value investors who seek to generate market-beating returns by making prudent and disciplined investments on behalf of our investors.

Investment Process

As the stewards of our clients' investable capital, we focus on preservation of capital first and foremost. This discipline leads us to invest in stocks where we believe that the potential price depreciation of a stock is minimal and the upside is considerable. To identify attractive investments, we conduct a thorough, bottom-up analysis of a company's financial statements, business model, and quality of management. When we invest in companies, we do so with a long-term time horizon; we are not traders speculating on short-term moves. Rather, we view our investment commitments as if we were purchasing the entire company versus merely a small minority stake.

See how our investment process can help you reach your goals. Schedule a meeting with one of our portfolio managers today.

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Some of the fundamental characteristics of our portfolio management process include the following:

  • We consider the strength of the economy, the overall direction of the market, but are ultimately bottom-up rather than top-down investors.
  • We place intense focus on the risk side of the investor equation, not just on the potential upside.
  • We seek out companies with healthy balance sheets, positive cash flows, solid business models, and strong management.
  • We tend to be contrarian investors by purchasing stocks of companies that we believe are only temporarily out-of-favor.
  • We look for companies that have an intense focus on delivering long-term shareholder value.
  • We manage tax-efficient portfolios and therefore try to minimize portfolio turnover, typically holding investments for 3-5 years.
  • We customize our client portfolios according to each client's risk tolerance, their return goals, and investment values and, in some cases, we consider securities outside of the formal research process.

Universe of Publicly-Traded Securities

Initial Screens

Quantitative Screening

Research Process

  • Fundamentals

    Market Trends

    Cyclical vs. Secular

    Pricing Power

    Competitive Moat

    Barriers to entry

    Patents

    Brand Strength

  • Financial Analysis

    Balance Sheet

    Non - Operating Assets

    Liquidity

    Financial Leverage

    Income Statement

    Revenue Models

    Operating Margins

    Free Cash Flow
  • Management/Governance

    Owner-Operator Mentality

    Insider Ownership

    Return Cash to Shareholders

    Capital Allocation Decisions
    Historical Performance
  • Valuation

    Methods

    Discounted Cash Flow Model

    Private Transactions

    Relative Valuation

    Residual Income

    Multiples

    Sum-of-the-parts

    Attractive Return Potential,
    Minimal Risk

Investment Team Consideration

    Assumptions Questioned

  • Strength of Competitive Moat
    Revenue and Profit Forecast
    Balance Sheet Strength
    Assumed Cost of Capital
    Market Size & Growth Potential
    Valuation Assumptions
    Downside Risk
    Management Quality

Investment Team Approval

Client Suitability / Client-Specific Screening

Trade Execution