Description Process Commentary
 
LargeCap Value
Investment Process

Purchase Discipline

Analysts focus on ideas that have limited downside risk and the opportunity to generate earnings/cash flows that are higher than what the current stock price implies.  Companies are closely monitored and factors considered in analyzing securities include:

  • Improving ROE (return on equity)
  • A declining debt/equity ratio
  • Positive cash flow
  • Expanding margins
  • Public market less than current private market comps
  • Positive earnings surprise without a corresponding increase in Wall Street earnings estimates
 
Sell Discipline

The sell discipline is essential to controlling portfolio risk and includes:

  • Stock achieves final price objective
  • Fundamental change in company or industry that negatively impacts original investment thesis
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