Investment Philosophy

We are an active investment manager seeking income and capital growth with less than market volatility.  We follow an investment philosophy and research process that is grounded in time tested models of valuation.  Our “growth at a reasonable price” and “model growth” templates drive our research process which is rigorous, repeatable and data-based.  All of our research is conducted in-house with institutional grade databases and tools.

We Take a Long-Term View

We begin with a macro-economic “30,000 foot view” that incorporates industry sector developments, secular trends, money flows, monetary policies and news events.  Dr. Lewis Spellman, our Macro-economist, provides key guidance in this area, with his expertise and focus on Federal Reserve monetary policy, interest rate trends, foreign currencies and income & employment statistics.

We Search for Positive Revenue and Earnings Growth

When selecting individual securities in more mature businesses and industries, we search for positive revenue & earnings growth, expanding gross & operating margins, and high return on equity.  We seek to buy these businesses when their stock price reflects reasonable valuation relative to their intermediate term growth rate.  For younger, more dynamic businesses and industries, we are less sensitive to valuation.  In this case, we are looking for industry leaders.  Young, industry-leading companies exhibit very rapid growth in revenue and earnings, a high percentage of sales spent on research and development and high return on equity.  They also often create defensible and unique intellectual property which drives new and exciting products, services or technologies.

Our Research is Fact-Based and Unbiased

As a fee-based investment manager with a fiduciary duty to our clients, “clients first” is how we operate each and every day.  Our research is fact-based and unbiased.  Further, we have no investment banking relationships.  We avoid business conflicts of interest but should there ever be a situation where there is even the smallest conflict of interest, we begin the conversation by acknowledging and explaining the conflict.  Our priority to client results is also reflected in our sensitivity to transaction costs and capital gains taxes.  Our business has grown over the years due to two simple factors: goal congruence with our clients, and excellent investment results.

We invite you to talk with us about your investment goals and how we can work together to achieve them.