Since 1985, the heart of our investment approach has centered around a company's ability to sustain or improve its earning power, as defined by return on capital or return on equity.  We select investments from a universe of established companies with large to medium capitalization by focusing on those firms we believe have the potential to generate strong earning power and whose valuation suggests that they are underpriced.  Central to our philosophy and process is a unique way of diversifying the portfolio across industries to manage risk.

We use a rigorous process to identify companies capable of generating greater earning power, or value, which sell in the market at low valuations.

1.  Generate investment ideas from carefully chosen research sources.

2.  Build a case for a particular holding by identifying reasons the company may achieve or sustain above-average return on capital and/or equity. Measure the attractiveness of current valuation of earning power.

3.  Assess the strength of the investment case.

4.  Determine the enhancement to the portfolio.  The selection is expected to have a positive impact on the overall portfolio and diversification.