A Unique Approach to Value Investing
Our Investment Process: A Disciplined Approach
Value investing is in our DNA. Our investment philosophy is rooted in a value investing tradition that spans nearly five decades – we are focused on: buying quality companies at a discount and holding them for the long term.
Our approach is grounded in academic research and refined through experience, with the goal of growing each client’s wealth over time. We work closely with clients and their families to build portfolios tailored to their specific goals, risk tolerance and circumstances.
The Four Steps
Step 1: Quantitative Screening
We score thousands of U.S. stocks and ADRs daily using a peer-relative framework that weighs a diverse set of factors from classic valuation metrics like the P/E ratio and more modern factors such as shareholder yield. This gives us a constantly updated view of where opportunity exists across the market.
Step 2: Qualitative Review
From there, we conduct a thorough review of each candidate, examining business moat, fundamentals, debt levels and the risk of value traps. Only those that hold up to scrutiny are considered for the portfolio.
Step 3: Goal Prices
For every holding we own or consider, we set a fair value target anchored in the future, not the present. These targets inform every buy and sell decision we make.
Step 4: Portfolio Construction and Ongoing Discipline
We build portfolios to reflect our full research process. Positions are monitored continuously, with daily scoring updates and frequent goal price reviews. We sell when circumstances change, when better opportunities emerge or when a position reaches its goal price.