Our equity strategies are grounded in a disciplined process designed to uncover value across markets. Using our internal screen, Return Pattern Recognition®, we are able to identify businesses exhibiting financial and economic characteristics historically linked to outperformance within their industries. By screening the relevant investable universe, we are able to spend the vast majority of our time on rigorous, fundamental research. Since our Firm's inception, we have relied on a consistent process and team approach to maximize the likelihood of creating alpha.
1
Screen the relevant investable universe
We begin our process by using Return Pattern Recognition® to screen the relevant investable universe and identify companies with financial characteristic historically associated with outperformance within their industries. Its core premise is that the traits that a company exhibits that position it to excel relative to its peers, differ by industry. This screen captures those nuances.
2
Calibrate risk
We look to minimize the risk that we believe matters to our clients – the risk of meaningful underperformance versus the assigned benchmark. Using downside deviation allows us to minimize this risk while preserving opportunities for excess returns against the benchmark.
3
Fundamental Research
More than 95% of our investment process is dedicated to rigorous fundamental research. Our practitioner's approach to investing allows us to evaluate companies both as investment analysts and as industry operators. We believe this dual-lens perspective enables us to ask more insightful questions leading to better answers, and ultimately, make superior long-term decisions for our clients.
Return Pattern Recognition®
What it is
An internally developed screening framework that evaluates companies’ economic and financial characteristics within the context of their industry to identify profiles historically linked to outperformance.
Why it matters
Different industries reward different traits. RPR® is built to respect those differences and highlight quality in context.
Impact on portfolios
Return Pattern Recognition® provides our team with a focused universe of companies to analyze in the depth required to make well-informed investment decisions.
Downside Deviation
What it is
An internal risk framework that isolates adverse return outcomes, aiming to minimize underperformance versus the assigned benchmark, while maintaining exposure to upside potential.
Why it matters
Clients experience risk asymmetrically. By focusing on downside risk, we seek to improve the path of returns while preserving the opportunity for excess returns over time.
Impact on portfolios
Position sizing and portfolio construction reflects the firm's focus on downside protection for each portfolio.
Fundamental Research
How we research
We approach the research of each company as both analysts and practitioners. Our rigorous fundamental research process includes assessing the competitive framework of a company's industry, understanding a company's latent assets and latent liabilities, scrutinizing company financials, and evaluating management. Our objective is to have a holistic view of each company we analyze.