Security
& Asset
Selection

High Quality Companies

The foundation of the investment strategy is to own the highest quality companies which have historically proven they can create shareholder value over long periods of time.  The entities can do this in a variety of ways.  The characteristics of these kinds of companies include the following:

  • Operationally Efficient
  • Strong Cash Flow and Free Cash Flow Generators
  • Large Total Addressable Markets
  • Unique and Highly Profitable Business Models
  • Irreplaceable Industries
  • Industry Leadership and Strong Competitive Position
  • Brand Identity is A Competitive Strength
  • Management Teams Are Flexible and Creative in Value Creation
  • Structural Advantage
  • Benefit from Difficult Economic Periods

Capitalizing On Market Mistakes

As a way to help generate superior returns, the second portion of the investment strategy is based on identifying and capitalizing on specific opportunities where the market has incorrectly priced an asset.  These situations usually are unique, but many revolve around the following areas:

  • A critical intersection in an industry
  • A turnaround
  • Financial engineering situation
  • Sum of the Parts Mispricing
  • Changing Efficiency of Operations

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