We do not adhere to benchmarks, but construct our portfolios based on our own extensive research into how and where we believe long-term growth is likely to occur. The core principle of this investment strategy is our top-down / bottom-up approach.
(Trend Identification) – Identify broad, secular growth trends, currently numbered at 20+ (e.g., demographic changes, growing demand for bandwidth, globalization, healthcare cost containment) that are:
- Well-defined and measurable
- Long-term in nature (at least 3-5 years)
- Not in flat, declining, and/or cyclical industries
- In industries with long-term growth impetus, which could exceed Gross Domestic Product (GDP)
(In-House Research) – Search for companies that should benefit from one or more trends, and perform extensive in-house research to select the companies which we believe:
- Have a strong, reliable management team and business plan
- Carry little or no debt
- Generate free cash flow
- Maintain optimal operating margins
We use traditional valuation guidelines and a proprietary scoring system to value each stock on our “wish list”. We believe one of the keys to reduced investment risk is close attention to stock valuation. Companies with solid fundamentals that are expected to benefit from secular growth trends are subject to in-depth valuation analysis.
- Our proprietary multi-factor scoring system allows fundamentals / valuation of individual growth companies to be compared to a growth universe
- A price to expected value range frames each stock’s potential with an emphasis on the longer-term risk/reward opportunity
- Traditional valuation tools include P/E, P/CF, EV/EBITDA
While the funds are no-load, management and other expenses still apply. Please refer to the prospectus for further details.
We get to know the companies we invest in and learn how they run their business.
Top-Down & Bottom-Up
We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.
We construct our portfolios based on our own proprietary investment strategy.
Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.
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