Stock Selection Process

Our investment team regularly screens a database of over ten thousand public companies to identify investment candidates. From this process we generate a “bench” list of more than 600 companies, which is continuously updated through ongoing database and research work. Our investment team continuously evaluates “bench” list investment candidates, that have both stable/improving fundamentals and attractive valuations, for possible investment.

We conduct a thorough security analysis of a company, its competitors and its industry before making the decision to invest. Companies whose business fundamentals and stock price valuation meet our criteria are either purchased or added to our “on-deck” list. The “on-deck” list is utilized as a source of immediately available new ideas to replace portfolio positions which have either become fully valued or whose business fundamentals may have changed.

Through our intensive research process we generate proprietary growth rates, earnings estimates, and price-earnings ratio targets as a basis for making our investment decisions. We believe that the research and stock selection process must be fast, flexible and opportunistic, because the investment environment itself is characterized by rapid change and frequent surprise.