The IPFM Investment Process
Our investment process is a fundamental bottom up process with a focus on balance sheet risks and identifying companies with strong and reliable cash flows, in good industries, with strong management teams, at attractive valuations.
Our analytical process is both quantitative and qualitative, based around 4 key factors:
- Balance Sheet – set hurdles must be met to enter investable universe
- Business Quality – company and industry assessment
- Management – experience, trustworthiness, competence
- Valuation – method varies by sector. DCF, SOTP, multiple analysis
Positive/ Neutral / Negative
rating for each factor
A company is excluded from the long investable universe if there is a negative rating in any of the above categories. Our portfolio consists of a concentrated 15-30 long positions in stocks with the most compelling upside to our valuation, along with selective short positions.