11.02.2018
The Lead - "Winner Takes All"
- One of our primary investment tenets is investing in companies with exceptional returns on capital.
- A McKinsey Consulting study released this month highlighted that of the 6,000 companies with $1 billion or more in revenue, the top 10% capture 80% of the economic profits, the middle 80% essentially zero, and the bottom 10% destroy value.
- Equity Opportunity Group portfolios tend to have concentrations in sectors that have proved to be fertile areas of economic value creation.
10.05.2018
Associate Spotlight - Tim Beyer
The Sterling Associate Spotlight for October features Tim Beyer, Managing Director & Portfolio Manager. Read more about Tim’s passion for working in asset management and what sparked his interest in the industry at a young age.
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10.03.2018
The Lead - "Defining Quality"
- As active managers we have heated debates on portfolio holdings, the most recent was on whether a security was a “quality” company.
- While quantitative metrics can try to measure quality, we believe there are shortcoming in merely screening for quality and “setting and forgetting." We highlight former holding General Electric as an example.
- We find having generalists with different perspectives but aligned goals helps in our pursuit of generating above average returns with below average risk.
