Our investment and research process provides a consistent, rigorous and repeatable approach to identifying and analyzing businesses. This has allowed us to deliver absolute returns for our clients while preserving capital and mitigating downside risk.

  • Our analyst team identifies and vets its own ideas through a disciplined, bottom-up process that often entails years of study before a core investment is made. Our analysts are members of a collective research pool that supports all portfolios at the Firm.
  • Our research is conducted independently with a focus on developing fresh perspectives on companies or value chains. In order to preserve our objectivity, Select Equity analysts make almost no use of Wall Street research on the long side and do not actively exchange insights with our peers. As a result, we believe our portfolios tend to be highly differentiated from those of other managers.
  • Our process includes extensive quantitative analysis as well as qualitative fieldwork conducted by a dedicated team of six former financial journalists and five sourcing specialists.
  • Our analysts are generalists, but focus on value chain analysis, studying suppliers, manufacturers, distributors and customers within specialized areas of the economy, and looking at companies across geographies and market capitalizations.
  • Our focus on detailed value chain analysis is driven by the multi-year holding period for most of our core investments; we are interested in predicting a company‚Äôs earnings power during the next three to five years rather than in the next quarter.
  • By investing in businesses with clean balance sheets, strong market positions, predictable growth, sustainable barriers to competition and the ability to prosper regardless of economic cycles, we hope to reduce the risk of significant capital loss even in the face of adverse news. In evaluating potential investment opportunities, we weigh downside risk more heavily than upside reward.
  • Portfolio managers have primary responsibility to oversee and manage risk but generally do so within clear portfolio-specific guidelines on leverage, position sizing, concentration, market cap exposure and other metrics.