INVESTMENT DECISION PROCESS
Our investment process begins with a macroeconomic and investment outlook where we determine which economic sectors and industries we believe will benefit most from our secular viewpoint. Extensive valuation and qualitative analysis is then performed on each sector, and industry.
Once we have identified attractive areas of growth, we then concentrate our research efforts. Over 90% of Stonebridge’s company specific research is internally generated and forms the foundation of our selection process.
Our fundamental research process employs a discounted cash flow analysis using our estimates of a company’s cash flows from current and future assets. Combined with the company’s cost of capital, we determine the intrinsic value of a company by placing it through a rigorous cash flow calculation model.
The characteristics and profile of the typical company that emerges from our investment decision process will have a superior management team, a strong balance sheet, high returns on capital employed (both relative and absolute) and a clearly defined strategy for growing the business.
Once we have identified attractive areas of growth, we then concentrate our research efforts. Over 90% of Stonebridge’s company specific research is internally generated and forms the foundation of our selection process.
Our fundamental research process employs a discounted cash flow analysis using our estimates of a company’s cash flows from current and future assets. Combined with the company’s cost of capital, we determine the intrinsic value of a company by placing it through a rigorous cash flow calculation model.
The characteristics and profile of the typical company that emerges from our investment decision process will have a superior management team, a strong balance sheet, high returns on capital employed (both relative and absolute) and a clearly defined strategy for growing the business.
- Investment Team Approach
- Bottom-up Research Process
- Internal Research is Championed
- Focused Portfolios of High Quality
Growth Companies
