Disciplined Process

We work to identify companies that are able to reinvest in their business at attractive rates of return, and invest in those companies at prices we believe don’t adequately reflect the potential value creation from those investments.

A core tenet of Kennedy Capital’s investment philosophy is that the operating cash-flow returns of a business provide a crucial measure of corporate performance. We believe reinvesting cash-flow into high-return projects creates a powerful compounding effect, creating value for shareholders over time.

Active, Fundamental Bottom-Up Stock Picking

Led by our Director of Research, we use a detail-oriented, bottom-up proprietary research process driven by a team of more than a dozen sector-specific analysts. We believe this level of specialization provides a competitive advantage allowing us to regularly capitalize on overlooked opportunities.

Efficient Trading Capability

KCM has invested significant personnel and technological resources to seek the best possible trading executions. Trading is a key competency of the firm and we believe delivers trading cost savings for our clients.

Risk Management and Oversight

Our Investment Policy Committee has responsibility for risk management and adherence to investment guidelines. We avoid outsized sector over/under weights and rely on stock selection to generate performance.

Sell Discipline

We set clear objectives when taking a position and closely monitor progress against those targets. Primary drivers for our decision to sell a stock if a change occurs to alter Kennedy’s view of the likely progression of the business include:

  • Delivering results below our expectations
  • A management change
  • A change in competitive dynamics
  • When valuations become full