Investment Research Process

Potential investment opportunities are identified utilizing a variety of sources and methods, such as our extensive reading about the markets and companies within it, research we perform on other investments (that leads us to consider competitors, related industries, etc.), and quantitative assessment (based on fundamental factors, such as earnings, cash flow, margin analysis, balance sheet strength, etc.). We may also seek companies that we believe are well-positioned to benefit from our long-term investment outlook. From time-to-time, we may also perform screens emphasizing characteristics of well-managed, attractively valued and financially strong companies.

Prospective equity investments are analyzed in detail, using a fundamentally based, bottom-up approach.  Our research methodology includes a thorough examination of a company’s strategy and outlook, its unique financial characteristics, and the capabilities of its management. In addition, we consider current economic trends as well as our expectations for the future. As part of our analysis, we review key events, SEC filings, published analyses, and other developments that we believe may influence the valuation and long-run suitability of investments. As part of our research process to assess a company’s fundamental value, we study its balance sheet, cash flow statement, and earnings history, and evaluate its future prospects.

At the conclusion of the research process, our Chief Investment Analyst presents his or her research to our Investment Committee and a vote is taken to determine whether or not our Investment Committee believes the security is suitable for client portfolios. Our Chief Investment Analyst and our Investment Committee also regularly review securities currently held in client portfolios to determine if they still meet our investment criteria.