Individual-company fundamentals determine stock prices
While interest rates, geopolitical events and other macro forces can move “the market” for fleeting periods, each company influences the long-term direction of its share price through operational execution.
Companies that top expectations attract positive attention
As growth investors, we view earnings growth as the ultimate sign of a company’s success. We believe companies with earnings power that the broader investment community underestimates offer the best potential for share price appreciation.
Exhaustive research legwork isolates companies with the most potential to positively surprise
We believe the best way to gain insight into individual-company earnings trends is to stay connected to the front lines of the economy through ongoing interviews with management teams, customers, competitors and suppliers. Exhaustive research is our firm’s central focus.
Each company earns its space in the portfolio by showing greater promise than an existing holding
Consistent with our individual-company focus, a portfolio position is prime space only available to a company with a better fundamental profile than an existing holding. Portfolio construction is a function of our continuous search for individual-company earnings strength.
Valuation sensitivity is critical to investment success
High valuations invite risk. To maximize upside potential and mitigate downside risk, we focus on rapidly growing companies that also sell at reasonable share prices relative to earnings.