Our asset management team based in Milwaukee, WI actively manages two Small Cap separate account equity strategies for institutional and individual investors. We apply a value-oriented approach to investing using our disciplined research process, the Three Pillar Approach®, while applying an ESG overlay.
Three Pillar Approach
We create a watchlist of companies that we believe have enduring franchises. The list is created through management meetings, intensive reading of company filings, media sources and screening. Our screens focus on companies that earn their cost of capital and have grown sales over the last 10 years. Companies that are attractively valued are further vetted using the Riverwater Three Pillar Approach.®
Pillar 1: Superior Business
We look for unique and sustainable businesses with defensible moats allowing them to consistently earn and exceed their cost of capital.
Pillar 2: Exceptional Management Teams
We focus on teams that exhibit a history of making wise capital allocation decisions and are aligned with shareholders.
Pillar 3: Attractive Valuation
Companies should be able to consistently generate or grow free cash flow throughout an economic cycle with flexible balance sheets. We prefer to pay either at or below market multiples on earnings.