Why We Invest | How We Invest
- Superior long-term risk-adjusted returns are priority number one.
Exceptional Management & Culture
- Our experience has shown that companies with high-involvement management practices and outstanding corporate cultures subsequently attain better shareholder returns relative to their peers and the overall market.
- EVC provides our investment team a platform to support and advocate for public companies that embody our core values. These companies tend to embrace:
— Proper Incentive Structures
— Empowered & Engaged Employees
— Customer Focus
— Fiduciary Duty
Rigorous Bottom-Up Research
- Invest opportunistically, regardless of market capitalization, sector, or asset class.
- Seek out securities or areas of the market that can be bought at meaningful discounts:
— Profitable Businesses in Niche Areas
— Exceptional Management & Culture
— Strong Balance Sheets
— Durable Competitive Advantages
- Target individual opportunities with the potential to generate 50%-100% returns over a 2-3yr period.
- Build a focused, high conviction portfolio of 30-40 securities.
— Our research has found that owning around 30 diversified securities gets 95% of the benefits of diversification (limiting losses and volatility) while retaining the power of stock selection.