Investment Process

The team seeks to invest in companies that possess franchise characteristics, are benefiting from an accelerating profit cycle and are trading at a discount to the team's estimate of private market value.

The team’s investment process focuses on two distinct elements—security selection and capital allocation. The team overlays its investment process with broad knowledge of the global economy.

Security Selection

Identify companies with franchise characteristics and defensible competitive positions

Invest in emerging profit cycles

Purchase stocks at a discount to private market value

Assess key environmental, social and governance issues that could impact future stock returns

Capital Allocation—Garden, Crop, Harvest® Investing

Build position size according to conviction

Garden — Smaller position sizes in companies that are early on in the profit cycle

Crop — Larger position sizes in companies where profit cycle is being realized

Harvest — Reduced or sold positions as stock approaches full valuation or profit cycle begins to decelerate

Research and Qualification

Invest opportunistically across entire global economy

Find growth wherever growth occurs

Employing deep vertical knowledge

Applying the same rigor to all potential opportunities

Environmental, Social, & Governance

Incorporating ESG without compromising returns

Identifying businesses with self awareness

An ESG framework that fits our process

Investing in businesses with sustainable characteristics