Vision Capital employs a combined top-down, bottom-up investment process to build a portfolio of companies that meet our growth criteria, when the stock of these firms is available at reasonable valuations. Initially a perspective on the prevailing macroeconomic conditions is developed in order to better understand how various factors may impact current and prospective investments.
With the macroeconomic perspective established the broad universe of growth stocks is screened to identify potential opportunities. All U.S. listed companies in the appropriate market cap range are screened utilizing a proprietary multi-factor growth model that emphasizes fundamental business characteristics, growth prospects, and current valuation. As a result of the screening process each company receives an absolute value called the “V-Score”. Each sector is ranked according to their “V-Score” and each stock with a score above the sector average becomes a potential candidate for the watch list. The watch list is complied with those companies that best meet the needs of the portfolio given the current market environment, macro-economic outlook and portfolio risk posture.
Following the screening process, each security being considered is analyzed from a fundamental perspective to assess its individual risks and rewards. This step seeks to identify companies with compelling business franchises that have the ability to generate long-term sustainable growth of their intrinsic value.
The portfolio is then constructed on a stock-by-stock basis spanning across all economic sectors and industry groups to provide for broad diversification. Vision is a collaborative and entrepreneurial firm where each Team members is responsible for identifying new opportunities, research, and buy/sell decisions. The Team works to develop consensus, but when required, the final investment decision resides with the team lead.
