Bottom-up, fundamental investment process. Screens over 1,500 companies, focusing on financial analysis, management, valuation assessment, new products/product enhancements, and peer market analysis. Risk analysis focuses on market risk, company risk, and portfolio risk. Three criteria guide the sell process: changes in company fundamentals that alter the original investment thesis; full valuation; and on-going research that reveals a better investment opportunity.
Distinguishing FeaturesInvestment experience
- Original team members have been together since 1992. Neil Eigen, the leader of the Value Team, has more than 40 years of investment industry experience.
- Our investment process is well-defined. We do not deviate from it.
- The small cap portfolio contains 40- 50 names
- A concentrated portfolio helps the team gain a comprehensive understanding of changes and activity occurring at companies and within industries
Investment ProcessFundamental research is key to our investment process
- Quantitative analysis helps to define the universe of investment candidates, with the small cap companies having a market cap less than $3.0 billion
- Qualitative analysis includes the early identification of catalysts that can accelerate the rate of earnings growth. This is the cornerstone of our process as the team believes accelerating earnings growth is an underpinning of exceptional stock price performance.
- Drivers of earnings acceleration can include management changes, restructurings, business cycle changes and market activity
- The Team's goal is to generate competitive returns over a three- to five-year time horizon while maintaining low turnover