It All Begins with Research
Research is the foundation upon which our firm stands. Over the last 30 years, we have built a research approach that gives us critical insight into the true value of corporate securities – both equity and debt. We continue to enhance our research platform by bringing new talent to the team, better organizing our resources, and utilizing innovative tools that help us unlock the real value of securities.
An Industry Focus Gives Us Perspective
Our research team is organized by industry rather than strategy. Our experience shows that an understanding of the intricacies of an industry – long-run margins, long-run profitability, returns on capital, supply and demand, and the competitive environment – is essential to making informed judgments about individual companies. Across all industries, our research team has developed profiles of over 1,000 companies of all sizes. Our objective is to understand not only the companies we invest in, but also the dynamics between players in an industry. This gives us the ability to source investment ideas creatively and respond quickly to changes in the market.
We Develop a Long-Term View
With industry knowledge as their foundation, our research analysts focus on assessing the fundamental drivers of a company's long-term value – normal earnings power, asset valuation, sustainability of the business, strength of the balance sheet, and management's use of capital. We communicate with company leaders to get a clearer understanding of the business. We build detailed financial models that help us evaluate risk from multiple perspectives. We do all this with a long-term view to understanding the true economics of a business, which can get lost by looking only at short-term operating performance.
Our Research Works
The most compelling aspect of our research is the long-term performance it generates. Over the years, we have tested, refined, and proven our approach. What drives our research advantage is our willingness to ask questions that others don't, and then tirelessly pursue the answers to those questions. We challenge assumptions, status quo beliefs, and historical conclusions. By thinking independently, we allow our research process to lead us to opportunities that others haven't spotted. By acting with conviction, we deliver our best ideas — whether equity or income – to our clients.