Our Investment Process-Finding Portfolio Candidates

We develop a dynamic list of portfolio candidates from a number of sources, both internal and external. We look for stocks with limited institutional recognition or sponsorship or are otherwise out of favor with the crowd. We utilize powerful database screening tools to find stocks of companies with specific financial and/or valuation characteristics. We’ve developed relationships over the decades with “idea generators” at firms ranging from one-person research boutiques to the largest Wall Street houses who understand our investment philosophy.

Ideally, the company will have little recognition from Wall Street analysts or be “out of favor” with the Wall Street crowd.

- Leverage
- Returns on Invested Capital
- Free Cash Flow Generation
- External Financing Needs

- Integrity and Competency
- Ownership of Stock
- Building Shareholder Value

- Price/Earnings
- Price/Sales
- Price/Private Market Value
- Enterprise Value/Free Cash Flow

- Management Changes
- Announced Restructuring
- Insider Buying
- Cost Cutting
- Growth Initiatives