Understand
Screening
Scour our securities universe and narrow our scope based on qualitative and quantitative criteria:
- Earnings, quality, valuation screens
- Company meetings
- Reading investment and trade publications
- Conferences (live & virtual)
- Talking to other investors
- General reading
Gauge
Internal Research
- Earnings: Momentum, macro and micro drivers
- Quality Growth : Balance Sheet & Cash Flow
- Appraisal: Underwrite appropriate range of values
External Research
- Meet with Sell-Side analysts and subject matter experts
- Meet with company management
Customize
Risk Management
- Timing: Assess timeliness of underlying allocation.
- Sizing: Ensure appropriate position size
- Exposure: Ensure appropriate industry and sector diversification.
Implement
Capital Allocation & Continual Risk Management
- Initiate: Establish a position
- Monitor: Regularly monitor underlying fundamentals and security performance.
- Assess Expectations: Seek and obtain new and relevant information to weigh against the current thesis
Oversight
Opportunity Cost Assessment
- Cost of Capital: Continually reassess the current thesis against existing opportunity costs
- Revisit: Reassess previous ideas passed on but placed on watchlist
- Recycle: Reallocate capital to superior ideas when presented