Different Investment Approach

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.

 

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