We believe the key to generating superior investment returns is the selection of investment opportunities that possess attractive valuations and demonstrate identifiable catalysts that are expected to generate accelerating earnings and cash flow growth.
We believe that having an understanding of macroeconomic data and events will help us identify developing themes and trends that may affect end markets, both positively and negatively. We believe that top-down analysis serves as a compass that may lead us to areas of the market that will benefit from the current macroeconomic environment and avoid areas that may struggle under current market conditions.
We believe that this philosophy leads us to investments that will produce attractive risk-adjusted returns that consistently outperform the market with less risk.
We look for macroeconomic data and events to provide clues that may lead to opportunities across sectors, industries and end markets. Then we apply rigorous bottom-up fundamental analysis on each opportunity, selecting only the best ideas where we have the highest conviction. We place an emphasis on quality and we look for high or improving ROIC, strong financial flexibility and proven management teams. Portfolios are constructed with 70-90 positions and are purposefully diversified by security and sector to help manage and mitigate risk.