How We Invest
How We Evaluate Quality
Key attributes often include:
Superior Product or Service
Durable Business Model
Exceptional Management
Network Effects
Financial Attributes of Portfolio Holdings
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Durable sales growth
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Strong free cashflow
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Stable or improving margins
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Future high return profile
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Sustainable earnings growth
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Strong balance sheet
Our Investment Process
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Idea Generation
Focused and purposeful
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Company-Specific Research
250-300 companies
350-400 management meetings annually -
Watch List
Stock scoring model
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Portfolio Integration
30-55 holdings
Quarterly portfolio reviews
Risk Management
Proprietary Risk Management Tools - Discipline and process can help mitigate human bias
Portfolio dashboard that measures whether behavior in context of a market environment aligns with expectations
Weekly tool that evaluates 25 fundamental, valuation and technical factors and helps to identify candidates for additional examination
Quarterly forensic accounting review by Manager of Risk Analysis. Companies with low grades discussed by team at portfolio reviews
ESG Integration
We are non-concessionary and manage risk by incorporating an ESG integration approach which helps us develop a more complete picture of the companies in which we invest. By incorporating original company-by-company risk and ESG analysis and direct engagement, we are actively filling an information gap inherent in coverage of many smaller companies.
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Original Research
We are passionate about conducting deep original research on U.S. small & micro cap companies that are often uncovered by Wall Street.
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Assessing Materiality
Guided by the SASB framework, we seek to understand what the most important risks, opportunities, and factors are for each company.
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Engaging Management
Discussing sustainability issues with management helps fill the information gap & uncover the most important issues affecting their company.