Investment Process

A disciplined approach that attempts to identify companies trading at low cash flow and EBITDA multiples relative to their Enterprise Value.

Sell Discipline

  • Insider Selling.
  • Stretched valuations (Forward P/E starts to approach greater than high teens).
  • Legal/Litigation issues.
  • Opportunity for better return exists elsewhere.
  • Security may also be sold (or reduced in size) if it falls below key technical levels.

Short Stocks

Selection of stocks for shorting is based on weakening revenues (missed sales estimates), weak industry fundamentals, mostly large companies (to reduce acquisition risk), and weakening technicals.