A fundamental, research-driven strategy that invests across the market capitalization and style spectrum, emphasizing free cash flow and capital structure to identify mispricings and opportunities
- Seeks most attractive investment opportunities across three distinct categories: Special Situations, Opportunistic, and Classic
- Bottom-up approach with an emphasis on free cash flow and capital structure analysis
- Focused portfolio with high active share
- Experienced investment team with attractive long-term track record
Portfolio investments are made across three distinct categories: Special Situation, Opportunistic, and Classic. Each category has unique performance attributes and characteristics. Taken together, the three categories enhance return potential and mitigate risk.
- Special Situations: Companies that require tailored, specific valuation methodologies and investment research.
- Opportunistic: Companies that have become inexpensive for a tangible reason that we believe is temporary, not permanent.
- Classic: Companies with proven management teams and consistent long-term performance.
Focus on Free Cash Flow
Our analysis considers the potential uses of free cash flow in developing the business and/or optimizing the capital structure. The combination and potential of these choices impacts shareholder value and is an essential part of our investment process.
- Business Model: On the business side, a company can reinvest in an existing business, enter a new line of business or do a selective acquisition.
- Capital Structure: In terms of capital structure, a company can accumulate cash, pay down debt, buy back stock or issue dividends.
Eight-person team of dedicated investment professionals committed to a disciplined research process, and the ongoing evaluation of current and prospective investments. Portfolios include the best ideas, diversified across market capitalization, style and investment category.