The Atzlan Way
Old Way:
Either/Or
- Creative or conventional Rule makers or rule followers
- Quantitative or fundamental analysis
- Concentrated or diversified
- Active or pass
New Way:
Both/And
- Creative and conventional
- Rule makers and rule followers
- Quantitative and fundamental analysis
- Concentrated and diversified
- Active and passive
“The test of a first – rate intelligence is the ability to hold two opposed ideas in the mind at the same time
and still retain the ability to function.”
– F. SCOTT FITZGERALD
Investment Philosophy
Investing is an Art & Science
We believe we can create long-term value for our clients by selecting and investing in a concentrated yet diversified group of great businesses that generate sustainably high free cash flows.
Our disciplined investment process combines objective quantitative and fundamental analysis and the assessment of intrinsic value and margin of safety.
Key investment characteristics
- Sustainably high FCF generators with high FCF margins and FCF yields
- Structurally competitive businesses in high- growth industries
- Differentiated business models with strong and sustainable competitive advantages
- Businesses led by reputable institutional management teams
- Efficient capital allocators with high ROEs, ROICs
- Solid capital structures with moderate/ optimal financial leverage
- Attractive valuations with ample margin of safety
Investment Process
We follow a disciplined
investment process
Investment Objective
Actively Managed Portfolios
- Seek long-term capital appreciation through our buy-and-hold, concentrated equity, long-only stock picking strategies
- Focus on international small- and mid-cap equities
- Seek to deliver above- average compounded returns with a long-term view and investment horizon of 5, 10, and 20+ years
- Concentrated and diversified portfolios with 15 to 30 stock picks
Apply systematic risk management by investing in a set of
high-quality businesses, well diversified across geographies and sectors - Moderate portfolio turnover
- Simple long-only equity strategies: No leverage, short positions, or hedging of any kind
Indexed Strategies
Provide clients with ease of access and diversification through pure quantitative, rules-based, higher turnover vehicles by employing the same philosophy and process we follow with our managed portfolios
Proprietary Quantitative Model
Blending Quantitative and Fundamental Analysis
Multiple Factor Value Model
Our fundamental analytical work focuses exclusively on the model’s top ranked stocks, concentrating on a small subset of securities that share characteristics that are consistent with our investment philosophy and objectives.
Model scores based on free cash flow strength and growth, capital structure and returns, profit growth, absolute and relative valuations, change in earnings revisions, and price momentum trends.
Quant model systematically ranks an investable universe with several thousand securities, classifying by relative attractiveness.
Multifactor quantitatives tool based on fundamental factors directly aligned with our investment philosophy.
Continuous monitoring, model output evaluated as an integral part of our Investment Commitee discussions.
Due Diligence
Comprehensive Analysis, Committee Oversight
