• The investment process is a four stage iterative approach. The first two stages comprise the research process including idea generation through value screens and fundamental analysis. The last two stages encompass portfolio implementation and monitoring. Each member of the investment team is a generalist responsible as a research writing analyst and a member of the portfolio implementation team. The objective of the research process is to provide individual analysis in a team based process without falling into group think. The structure helps to avoid biases and optimizes the use of time.

     

    Cape Ann’s priority is to identify inexpensive stocks through their screening process and then conduct fundamental research to assess the quality of the underlying company. The team is continually assessing what the best use of capital is and a consistent buy and sell discipline helps them in this regard. The investment team seeks to sell stocks that have appreciated and are more expensive than when they were purchased with the proceeds redeployed into cheap stocks that have more intrinsic value upside.

     
     
     
     
    portfolio

    Typically 40-80 Investments

     
     
     
     
     
     
     
     
    value screen

    Fundamental Value Screening of Investable Universe

     
    quality assessment

    Company Financial & Operational Analysis

     
    portfolio

    Typically 40-80 Investments

    portfolio implementation
    reserve list

    Approximately 50 Qualifying Candidates

     
    monitoring

    Assessment of portfolio and stock specific risks

     
     
     
     
     
     
     
     
     
     
    reserve list

    Approximately 50 Qualifying Candidates