Investment Process


Investment Process

Step 1: Quantitative Analysis

We rate the stocks in our universe according to our proprietary quality rankings model using the following factors:

QSV Quantitative

Step 2: Qualitative Analysis

We believe quality companies defend and maintain high returns on capital through proven / durable competitive advantages, such as:

QSV Qualitative

Portfolio companies referenced above are chosen solely to serve as examples of the factors they represent and are not a recommendation of any securities.

Step 3: Valuation

We understand that a company’s market value is comprised of its invested capital and discounted future economic profits:

  •  A company only creates value if its return on invested capital (ROIC) is greater than its cost of capital (COC)
  • If the ROIC is less than its COC the company destroys capital and market value should be less than invested capital (these are stocks we look to avoid)
QSV Valuation

Step 4: Portfolio Construction

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