Fundamental Research
Once our macroeconomic overview has been determined, our team of fundamental analysts prioritizes industry sectors and geographic regions around the world to uncover compelling opportunities. Although the process from top-down economic analysis to individual investment selection is continuous, we formally meet at least weekly to review our holdings and to consider new investments and changes to our strategy. We apply a rigorous due diligence process to all proposed investments within your portfolio, including the following:
- We meet with company management teams, review their operations and assess the prospects for their firm and their industry.
- We look for defensible corporate strategies with clear, understandable business prospects. Our analysts are able to explain clearly and simply how the business makes or loses money, and the key variables determining success and failure.
- We only invest in companies whose risks we can understand and quantify. Understanding the drivers of an opportunity and its risk, is critical to our goal of capital preservation.
- We search for management teams with strong histories of executing their business strategy and whose record we can objectively measure.
- We target companies with a growing cash flow stream. In our view, growing cash flow increases potential future value, decreases risk, and increases long-term strategic flexibility.