To reach our investment goals, we follow a two-part undervalued growth strategy:
1) Identify companies with superior growth prospects, which we define as:
- Secular growth, rather than cyclical recovery
- Growth that can be sustained at an above-average rate for at least three to five years
- Expansion that results from quality characteristics such as dominant products, superior marketing, forward thinking management and the capability to self-finance
2) Invest in such companies when their equities are truly undervalued:
- Find distortions in market pricing
- Employ stringent relative value criteria
- Maintain strict buy and sell disciplines
