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
GardenSM — Smaller position sizes in companies that are early on in the profit cycle
CropSM — Larger position sizes in companies where profit cycle is being realized
HarvestSM — Reduced or sold positions as stock approaches full valuation or profit cycle begins to decelerate
Broad Knowledge
Invest opportunistically across entire global economy