Investment Process
- We begin with the 1,000 largest companies traded on U.S. markets.
- We use various tools to identify the most promising potential investments within this universe.
- Promising potential investments are assigned to sector specific analysts for extensive review.
- One output of this review is the estimation of the growth prospects, normalized out-year earnings and free cash flow of the potential investment.
- We regularly test our key assumptions to determine if a proper margin of safety has been established under a range of scenarios.
- At the conclusion of this review, the risk and reward of the prospective investment is weighed against current investments in the portfolio.
- Patience is key - we only make investments in companies offering attractive prospective returns and minimal downside risk.
70 South Lake Avenue, Suite 930
Pasadena, California 91101
626.304.6000
