OUR PROCESS
Initial Screening
Apply exclusionary criteria and analyze key financial metrics such as growth, ROE, and FCF yield to narrow down our universe to the most promising companies, Analysis focuses on companies that consistently earn their cost of capital and demonstrate sustained growth over a 10-year period.
Watchlist Development
Identify companies aligned with top-down themes, conduct qualitative valuations, engage in management dialogue, and assess sustainability factors.
Valuation Analysis: Three Pillar Approach®
Evaluate companies using our proprietary Three Pillar Approach.® Companies must meet two of the three pillars to qualify for watchlist:
- Superior Business: Unique business models with sustainable competitive advantages
- Attractive Valuation: Defensible moats enabling consistent above-cost-of-capital returns
- Exceptional Management Teams: Management teams with proven capital allocation expertise and strong shareholder alignment
Companies showing potential at inflection points are prioritized.
Portfolio Additions
Build team consensus following analysis of qualitative research and Bull & Bear cases. Once added to a portfolio, team actively engages with management and monitors company against our Three Pillar Approach®.
Risk Management / Sell Discipline
Continuously monitor essential risk factors, including earnings outlook, industry cyclicality, legal/regulatory issues, and macroeconomic conditions. Positions are actively managed and trimmed where appropriate to reassess the investment thesis and limit downside risk.