Across all of our strategies, our team utilizes an intensive bottom-up fundamental research process to derive investment themes. For us, it starts with face-to-face meetings with the management teams of hundreds of companies annually which represent a broad spectrum of market sectors. We collect numerous data points from many industries and sectors, which we weave into themes that we believe will provide a catalyst for revenue and earnings growth. Our team performs in-depth analysis of the companies, their competition, and suppliers to accurately analyze finances and understand managements’ plans and motivations. Through this process, we identify those investments with the best overall business model, competitive positioning, and management team.

Once a company has cleared this fundamental hurdle, we focus on a valuation process that we call “triangulation.”  Because a company’s stock value is a moving target, we use three valuation methodologies which include earnings, industry, and cash flow metrics to reach a price target that is reviewed and updated daily for new information. To the extent that the price target provides at least 35% upside, the stock is considered for inclusion in the portfolio.  In order to ensure that portfolio companies maintain their attractiveness, we track position performance on an absolute and relative basis which signals an alert to identify underperforming positions for review.  In its totality, this fundamental process provides insights that lead us to pinpoint themes and leverage them to construct a portfolio that performs.

Our firm’s hallmark investment approach is called “Thematic Investing”. Thematic investing involves deploying investments in a number of companies that benefit from the same trends or economic forces. We meet with hundreds of companies annually which helps us to uncover these investment themes. Once a theme is identified we investigate horizontally to the competitors and vertically, up and down, to the supply chain to identify companies that are best positioned to benefit. Our thematic approach enables us to;

• Focus our research efforts quickly on industries we believe hold great promise
• Maximize the higher growth segments of the economy in our client’s portfolios
• Allows us to nimbly enter and exit our investments due to the diversification that the thematic approach provides