We believe that earnings growth is the primary driver of stock prices over the long term, and that excess return can be achieved by investing in those companies with improving business fundamentals.

1
Identification and Analysis
Process
- Computer Screenings
- Company Interviews
- Direction of Growth
- Actual vs. Expected
Results
200-300 Stocks
2
Valuation
Process
- Drivers of Improvement
- Magnitude
- Sustainability
Results
100-120 Stocks
3
Portfolio Construction
Process
- Bottom Up
- Formal Weekly Meeting
- Sell Discipline
Results
85-110 Stocks


A process that emphasizes the direction of growth over the absolute level of growth

A focus on actual fundamental improvements vs. anticipated improvements enhances our success rate

A disciplined analysis focused on the magnitude and sustainability of the driver of fundamental improvement

