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- Value equities offer superior risk-adjusted return opportunities
- Focus is on the best companies within
value universe
- Superior financials
- Strong competitive position
- Shareholder oriented management
- Fundamental
equity and cash flow analysis necessary to identify value
- Fundamental cash flow and credit analysis utilized to identify value
- Screen for companies selling at
discount to market (P/E and P/CF)
- Identify superior companies
- Assess free cash flow generation capability
and debt burden
- Create bull/bear case to determine risk/reward potential
- Review technical support/resistance
levels
- Supplement investment research with company visits, management interviews and industry conferences
- Catalyst Driven
- Positive operating fundamentals or catalyst must be present
- Improving Order
- Increasing Margins
- Improved Cash Flow Generation
- Accelerating Earnings
- Management Change
- Insider Activity
- Trading Opportunity
- Timing Critical
Sell/Reduce Equity Investment when: - Risk/Reward becomes less favorable
- Target achieved -- technical
and/or valuation based
- Business fundamentals deteriorate
- Loss limit reached (absolute or relative to market)
- May
purchase puts and sell covered calls to reduce performance risk
Investment Strategies/Products
Investment Philosophy
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