Using thorough, bottom-up, fundamental analysis, the strategy seeks to identify high quality companies which demonstrate sustainable, above-average growth potential over a 5- to 10-year time horizon and are trading at attractive valuations.
The investment process is rooted in the belief that there are a number of companies globally that benefit from structural growth themes, have defendable market positions, proven management teams and the financial flexibility to maintain their competitive advantages for extended periods of time. As a result, these companies can provide relatively high returns on invested capital.
We buy companies when their stock prices imply valuations that are significantly below what we determine the businesses are worth. We recognize that price is one of the most significant factors in the returns we earn.
Risk Management is integral throughout the investment process.
- Fundamental Risk managed by a focus on high quality companies
- Security Risk managed by sound portfolio construction
- Valuation Risk managed by continous monitoring of valuations
- Trading Risk Managed by measured and methodical trading
Independent Risk Management Team: Portfolio Level
- Monitors active security, industry and sector weights
- Monitors projected volatility and tracking error
- Monitors exposure to unintended factor bets
- Monitors liquidity risk
Firm Level: Independent Risk Management Team
- Performs comprehensive portfolio review with investment team and senior management
- Monitors individual security holdings across the entire firm