We believe our approach to managing money is understandable, relatable and makes sense to our clients.
Investment Objectives
Partner With UsA Commonsense Investment Philosophy
To deliver a more consistent, repeatable, and less volatile experience, Tandem seeks to identify companies with these four key attributes:
- Consistent fundamental growth as measured by consistent growth in earnings, revenue and cash flow through any economic environment
- Consistent dividend growth (if paid) because of the consistent fundamental growth
- The business should have a uniqueness, dominance, or competitive advantage
- Consistency in and depth of management
A Commonsense Investment Process
Our investment process is based on math. It removes human emotion, interpretation and bias by following this 3-step process:
- quantitative analysis: Proprietary ratio computation to screen across a 3,000+ stock universe plus mean reversion to identify attractive points of action
- semi-quantitative review: detailed review of quantitative findings to ensure accuracy of data
- human implementation: results reviewed and implemented, and action is then taken by the Investment Team
A Commonsense Investment Discipline
As a long-only manager, there are only five actions we can take, all of which are driven by our proprietary ratio and mean reversion.
- Buy: a stock meeting our criteria that is “attractively valued” will be incepted
- Add: a core holding may be added to when it is “attractively valued”
- Hold: a core holding that is within a “normal” valuation range will be monitored and held
- Trim: a core holding may be trimmed when it is “overvalued” or fundamentally deteriorating
- Liquidate: a core holding will be liquidated when it no longer meets our fundamental criteria
A Commonsense Investment Experience
As portfolio managers, we are not concerned with conforming to an industry norm. To us, Willing to be Different means:
- we take seriously the notion of buying low and selling high, with the discipline to wait
- we seek to deliver a more consistent, repeatable and less volatile experience than the market
- we aim for low volatility and low downside capture
- we are willing to hold cash when few buying opportunities present themselves
- we buy stocks when they ought to be bought — not because we sold something
There is no guarantee or promise in any of the statements listed above. It is our objective to simply strive for these types of investment objectives.
What Makes Us Different
The Philosophy
When it comes to portfolio management, Tandem is “Willing to be Different”. We believe our approach to managing money is understandable, relatable and makes sense to our clients. When you truly are “Willing to be Different”, you are not concerned with conforming to an industry norm; you are not concerned with being a solution for all. We do not conform or change our philosophy to fit the most recent narrative. We believe in staying the course, staying invested, and staying true to our investment discipline.
The Process
Tandem partners with financial advisors to deliver a core solution that aims to keep investors invested. We rely on a quantitative investment process that seeks to identify businesses that grow through any economic environment, and then values those businesses using its time-tested mean-reversion model. We seek to deliver a more consistent, repeatable, and less volatile experience than the market. Our disciplined investment process is solely math-based and removes human emotion, bias, and interpretation. It is one discipline. Mathematically driven.
The Partnership
At Tandem, we believe communication, accessibility, and high-touch service are key to building long-lasting relationships with our financial advisor partners. We work with 900+ partners across the United States and pride ourselves on providing a white-glove partnership experience that is unparalleled by our peers. It is our goal to set our partners up for success by sharing timely content and market commentary. We are accessible virtually or for in-person meetings and have an open communication network between our team and partners, so we can be there to support you every step of the way!
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