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Our Investment Strategy

Our investment strategy seeks long-term capital appreciation through a process of disciplined research and analysis, which includes seeking a thorough understanding of a company's value relative to other opportunities available. Dean Ryle has a culture of risk mitigation in portfolio construction. The strategy invests in U.S. large capitalization (”large-cap”) companies through the ownership of common stock. 

We Look For Companies With These Characteristics

 

High Free Cash flow to the Firm (FCFF) relative to the stock price. Companies that create excess cash over and above the business’ annual capital requirements relative to the price of the stock. Sometimes referred to as free cash flow yield.

Low volatility in FCFF. Ideally, companies will display low volatility of cash flows, which provides a level of certainty.

High growth in FCFF. Free cash flows should display growth over time.

High growth in operating revenuesOperating revenues should display growth over time.

Simple and easy business models. We never invest in any company we can’t explain in relatively simple terms.

Dominant in its industry. Companies that have been through periods of recession and emerged stronger.

Superior returns on capital. Companies that achieve high margins.

Sustainable competitive advantages. These protect the company from the competition and allowing management to increase prices above inflation without losing market share.

Strong Balance Sheet. Companies with sensible gearing levels.

Quality Management. Companies with a proven track record of outstanding performance. Management should display honesty, intelligence, and integrity.

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