Our primary investment objective is to seek capital appreciation over a long-term period. We invest in a mix of shares and bonds to achieve a diversified portfolio with smoother cash flow over time.

Shares

Early Equity focus on investing in shares of companies we believe to have strong earnings growth potential compared to other companies (growth companies). Growth companies tend to have share prices that are high relative to their earnings, dividends, book value, or other financial measures. While Early Equity may invest in companies of any size, we generally focus on companies with small to medium market capitalizations. Early Equity uses a bottom-up investment approach to buying and selling shares. We look very closely at the company’s management, history, business model, growth prospects and competitive advantage.

Some of the criteria that guide us in the identification of potential are:

  1. Strong historical earnings growth
  2. Strong projected earnings growth
  3. Improving returns on invested capital and cash flows
  4. Competitive advantage of products and services
  5. Management ability

Quantitative models that systematically evaluate a company’s valuation, earnings, business ratios, and other factors may also be considered. Although we seek investments over a long-term period, we will sell a security if we believe a company’s fundamentals will deteriorate or if we believe a company’s share has little potential for appreciation.