We put our philosophy into action with a four-step process that is driven by our proprietary model and focused on bottom-up stock selection. As decisions arise throughout the process, we Choose Wisely®.
Each of our guiding principles is reflected in our investment process, providing a clear link between the workings of the market and how we invest.
Markets are rational over time. But in the short term, the behavioral biases of investors lead to stock mispricings.
We rely on active management to identify and exploit pricing inefficiencies on behalf of our clients.
The academic work that is the basis of our approach represents sound financial theory.
We rigorously apply Discounted Cash Flow Return on Investment methodologies.
Companies that create real shareholder value are those that generate real earnings in excess of their real cost of capital.
We measure real economic performance, focusing on a company’s cash flows and cost of capital so that we can establish our own estimates of intrinsic value.
A broad opportunity set increases the likelihood of adding alpha.
In addition to including both growth and value stocks, our portfolios consist of benchmark as well as non-benchmark holdings. Portfolios are tilted one way or another depending on where the most attractive opportunities are at a given point in time.
Controlling risk is vital to generating consistent long-term returns.
We follow a systematic, model-based process designed to minimize unintended exposures and eliminate human emotion.