Our process begins with a quantitative screening to identify stocks trading in the lowest decile of the market by price-to-tangible-book-value. Within this universe, we conduct intensive fundamental research to identify the stocks with the greatest potential for outperformance.
This process involves analyzing the quality of book value and identifying hidden assets and liabilities. We seek to identify companies with significant underappreciated earnings potential over the next 2-4 years. Those that meet our strict valuation criteria are added to our proprietary watch list for further in-depth analysis. From this watch list of approximately 200-300 low price-to-tangible-book-value stocks, we choose the most attractive ones to conduct further fundamental research.
We are an employee-controlled investment management firm with an extensive track record of success. We offer separate accounts across six composites: All Cap, Large, Mid, Small, Micro, and Global Value.