Investment Beliefs

Our investment approach is based on four core beliefs.

1. We believe that companies with superior earnings will be rewarded with superior market performance.

We seek to build portfolios that produce more future earnings per initial cost of investment than those of the client's designated benchmark. Our goal is to buy a future earnings stream at a lower price than the market average.

2. We believe that markets are reasonably efficient but not perfectly efficient.

We look to select stocks that the model has identified as, on average, slightly misvalued relative to similar stocks. The mispricings we identify are relatively small. Our technology is ideally suited to uncover these under- and overpriced stocks before the discrepancy is corrected.

3. We believe that mispriced stocks can be identified by rigorous analysis of fundamental data.

It is our firm conviction that a company’s fundamentals drive its earnings and those earnings ultimately drive performance. Therefore, we seek to capture both short-term earnings growth, as well as a long-term earnings advantage, through rigorous fundamental analysis.

4. We believe that consistent application of common sense valuation criteria provides an advantage.

We combine fundamental knowledge with technology to value companies. This enables us to compare common characteristics among groups of companies and analyze hundreds of individual pieces of information about each company with speed and efficiency, avoiding the biases of other approaches.

For an overview of our strategy, click here.