Research before exposure.
The firm combines market study, company analysis, structured experimentation, and continuous review to develop and evaluate internal investment ideas.
Research begins before there is a position to justify, and continues after there is one.
Work is retained whether or not it leads to a position. The record of what did not hold is as useful as the record of what did.
Market Study
The structure, participants, and prevailing conditions of the markets the firm operates in.
Company Analysis
Financial statements, disclosures, and operating detail examined first-hand.
Structured Experimentation
Ideas are specified and bounded before they carry capital.
Continuous Review
Findings are revisited on schedule, and conclusions are allowed to expire.