A Different Investment Philosophy
Common sense analysis
Companies capable of growing earnings regardless of economic circumstances are more likely to reward patient shareholders. To perform well over a complete market cycle, companies should demonstrate:
- Consistent growth in earnings, revenues and cash flow through any economic environment.
- Consistent dividend growth as a result of earnings, revenue, and cash flow growth, if dividends are paid.
- Uniqueness, dominance, or competitive advantage.
- Consistency in and depth of management.
A Different Investment Process
A disciplined system developed around our proprietary ratio
- Quantitative analysis: Proprietary ratio computation across our 2,600+ stock universe.
- Semi-quantitative review: Detailed fundamental review of quantitative findings.
- Human Intervention: Results reviewed by the investment team.
- Technical Analysis: Price action determines key entry and exit points.
A Different Sell Discipline
Prescribed by methodology and is not subject to sentiment, emotion or interpretation
- Fundamental Sale: A stock violating Tandem’s fundamental criteria must be liquidated.
- Valuation Sale: A stock meeting Tandem’s fundamental criteria but considered overvalued by Tandem’s quantitative process will have 25% of our holding sold.
- Significant Price Movement: A stock experiencing significant relative price appreciation will have 25% of the holding sold. A stock experiencing significant relative price decline will be reviewed.
A Different Investment Experience
We exhibit uncommonly low volatility and low downside capture
- We hold cash when few buy opportunities present themselves.
- We manage tax consequences.
- We manage the assets clients entrust to us, even if we didn’t buy them.
- We buy stocks when they ought to be bought — not because we sold something.