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 earnings and cash flow growth through any economic cycle
- Consistent dividend growth as a result of earnings and cash flow growth
- Consistency in and depth of management
- Uniqueness, dominance, technological advantages or barriers to entry
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 investment team.
- Technical Analysis: Price action determines key entry and exit points
A DIFFERENT SELL DISCIPLINE
Tandem’s sell discipline is prescribed by methodology and is not subject to sentiment, emotion or interpretation
- Fundamental Sale: A stock violating our fundamental requirements must be sold.
- Valuation Sale: A stock meeting our fundamental requirements but considered overvalued will have 25% of our holding sold.
- Significant Price Movement: A stock experiencing significant relative price appreciation will have 25% of our position sold. A stock experiencing significant relative underperformance is reviewed.
- Protective Stops: When a stock is to be sold, a protective stop is placed under the current price and moved up if the stock’s price continues to rise.
A DIFFERENT 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.