Core Equity Investment Management
Objective: To produce consistent returns by investing in companies that have attractive prospects relative to valuation or net assets
Through a rigorous process based upon in-depth analysis, Cedar Hill constructs a diversified portfolio of companies that have attractive growth prospects relative to valuation, or are undervalued relative to their net asset value. Cedar Hill evaluates companies based on quantitative metrics as well as qualitatively assessing corporate management, business strategy and macro factors impacting the industry. Importantly, Cedar Hill analyzes an investment's risk before addressing the potential return opportunity.
Business criteria focuses on profitability, financial resources, the market position of the company, and the historical track record of the management team. Additionally, we intensively assess the competitive landscape within the industry, identifying key macro trends as well as economic, political, and regulatory risks. Valuation is determined utilizing internally generated earnings and cash flow projections.
Price targets are developed for each company in the portfolio and reassessed based on business and economic trends. Portfolio positions are eliminated when one of three conditions occurs: the company's stock has met our price objective, another position offers better risk/reward characteristics, or deterioration in the business or industry has made the company susceptible to a permanent impairment.
By creating a diversified portfolio of attractive companies, and performing thorough analysis throughout the lifecycle of each investment, our Core Equity Portfolio is designed to produce consistent results.