Rigorous Independent Research

Our research process begins with a thorough qualitative assessment of business fundamentals, including market and regulatory structures, competitive environments, and barriers to entry. We focus our analysis on identifying high quality assets with the ability to generate durable and growing cash flow streams. Companies that fit our investment criteria are then scrutinized by management quality, capital allocation, and governance. Valuation analyses are performed in the context of industry, market, and idiosyncratic factors. Individual analyst recommendations are thoroughly vetted for merits and risk via internal peer review. Ultimately, we strive for of a consensus-driven approach to security selection.

Qualitative Business Assessment

  • Consume industry and company-based research reports, attend analyst days and industry trade shows, and interview management teams
  • Assess business model durability and determine scope of barriers to entry and / or threats to cash flow streams
  • Scrutinize management strategy and capital allocation behavior. Converse with regulators, competitors, customers and suppliers to establish corporate reputation for competence
  • Review and assess robustness of corporate governance in the context of ESG (Environmental, Social and Governance) best practices

Quantitative Assessment

  • Model business drivers and financial statements to assess business quality, predictability, and the level of accuracy embedded in consensus expectations
  • Assess potential changes in cash flows, dividends, and earnings
  • Perform absolute and relative valuation analyses
  • Consider potential for inorganic value creation through net asset value assessment

Internal Peer Review

  • Analyst conclusions are regularly challenged and debated
  • Weekly research meetings are utilized to formally present new portfolio ideas and review existing holdings
  • Daily morning meetings before the market open provide investment team members the opportunity to discuss the potential impact of recent news events