The IPFM Investment Process
Our investment process is a fundamental bottom up process with a focus on balance sheet risks and identifying companies with strong and reliable cash flows, in good industries, with strong management teams, at attractive valuations.
Our analytical process is both quantitative and qualitative, based around 4 key factors:
- Balance Sheet – set hurdles must be met to enter investable universe
- Business Quality – company and industry assessment
- Management – experience, trustworthiness, competence
- Valuation – method varies by sector. DCF, SOTP, multiple analysis
Positive/ Neutral / Negative
rating for each factor
All stocks in our investable universe are ranked in order of their Annual Rate of Return (ARR). Our portfolio consists of a concentrated 15-30 long positions in stocks with the most compelling upside to our valuation, along with selective short positions.