Investment Process

Investment Process

We believe a company's worth is the total amount of cash it will generate over its lifetime, discounted to its present value. We make our valuation estimates realistic and conservative. The idea is to reduce both stock selection risk and overall market risk by owning those companies that have outstanding cash flow characteristics with increasing shareholder value.

As we are a new asset management firm, the best indicator of our risk profile was to test our valuation methodology against historical data in a "back-test." Our back-test spanned the ten-year period from 2nd Quarter 1997 to 4th Quarter 2006 and covered a list of approximately 7,000 non-financial stocks.

If you are interested in viewing our risk profile back-test results, in a PowerPoint show, please click here.

Disclaimer

The back-tested results are believed by management to be a reasonable and fair representation of our risk profile and valuation methodology. All comparative data in the back-test was from sources we believe to be reliable, but we do not guarantee their accuracy.