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We are bottom-up in our approach to research and spend the majority of our efforts at the company level. We let our research process lead us into the investments we make. Ultimately, we seek to find in management: integrity, competence and the desire to create shareholder value.
Capital preservation is key to long-term investment success. Our all cap approach also limits risk. By diversifying across the capitalization spectrum, we are able to reduce the overall risk of our Client's portfolios while consistently out performing the Russell 3000 Growth and the S&P indexes.
What We Look for in a Company
We buy for our Clients what we buy for ourselves. Our stock selection includes visits to company facilities to meet with top executives and observe manufacturing processes and procedures. We also assign ratings in the following areas:
- Management quality
- Direct ownership of company stock
- #1 or #2 market position
- Strong investment in research and development
- High barriers to entry including patents, distribution systems, etc.
- New product innovation
- Recurring revenues from disposable products or demand
- History of strong revenue and earnings growth
- Above average expected growth rate
- Superior corporate governance
- Attractive risk/reward valuation
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