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We commit the time and resources necessary to find opportunities
within the mid cap
market.
A core tenet of our investment philosophy is that gaps or lags in the timely delivery and use of key company information can lead to the inefficient pricing of stocks. These inefficiencies often create investment opportunities in mid cap companies.
The challenge in question for investors is - how do you systematically and consistently identify and exploit those opportunities? We accomplish it by dedicating significant resources to examine almost every news item released in the universe of mid cap companies. This is done every day, on a real-time basis. The process is labor intensive, but gives us an edge when analyzing companies. For this to work, we must give investment professionals the tools necessary to do intense, bottom-up, fundamental research. With the right tools, our process helps the mid cap team identify changes in market share, new product cycles, and industry trends that may presage the correction of inefficiencies in an individual equity.
Once we identify inefficiencies in valuation and news dissemination, our staff performs fundamental analysis, ultimately investing in companies with a demonstrated ability to generate returns in excess of their cost of capital. Speaking directly with management, we ask questions aimed at refining our perspective on each company, and we often follow these contacts with site visits. We evaluate the business enterprise, and we quantify the magnitude of the inefficiency we see, selecting the best investment opportunities for our portfolios. |
