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| Our goal is to produce
an efficient portfolio on a risk/return basis. We
diversify across attractive sectors, limit individual
holding sizes, and have a strict sell discipline
and low portfolio turnover. If we have identified
a "good business" at a "good price," time is our
ally as patient investors. |
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| We use the following
evaluation components in our investment process: |
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| Determine the sustainability
of the business, earnings drivers, barriers to entry,
and competitive advantages. |
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| Focus on companies that
generate cash earnings and assess the quality and
character of those earnings to determine the net
cash flow from the business. |
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| Examine relevant claims
against net cash flow and determine the necessity
of these claims to maintain and grow the business.
Evaluate how management will use free cash flow.
Value the cash flow stream and compare it to enterprise
value to determine the attractiveness of the investment. |
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| Identify management
with an intention and demonstrated ability to create
shareholder value. |
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| Uncover, where possible,
hidden, undervalued or underutilized assets, especially
in under-researched small and mid cap companies. |
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| While the security selection
and research methodology is the same for all of
Epoch's equity strategies, the portfolio construction
process is adaptable to the specific parameters
of each client's individual mandate. |
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