Moretus Investments Research Process
Systematic Screening
- Utilize proprietary algorithms to screen global equity markets for potential value opportunities.
- Focus on identifying companies with strong fundamentals that appear undervalued relative to their intrinsic worth.
Market Inefficiency Exploitation
- Pay special attention to lower market cap securities where inefficiencies are more prevalent.
- Monitor market trends and anomalies that may indicate mispricing.
Network and Industry Intelligence
- Leverage industry contacts and expert networks to identify emerging opportunities or potential disruptions in various sectors.
Fundamental Analysis
- Conduct thorough financial statement analysis, focusing on key value metrics.
- Assess the company's competitive position, market share, and growth potential.
Business Model Evaluation
- Analyze the sustainability and scalability of the company's business model.
- Identify potential catalysts for value realization.
Risk Assessment
- Evaluate potential risks that could lead to permanent capital loss.
- Assess the probability of the investment thesis playing out incorrectly.
Real-time Data Tracking
- Implement advanced data gathering techniques to monitor company performance in near real-time.
- Utilize alternative data sources to gain unique insights into the company's operations and market position.
Predictive Analytics
- Apply machine learning models to forecast key business metrics and potential market reactions.
Sentiment Analysis
- Monitor social media, news, and other public sentiment indicators to gauge market perception and potential shifts in investor attitudes.
Direct Communication
- Conduct interviews with the company's CEO, CFO, and other key executives.
- Attend investor conferences and company presentations to gain deeper insights.
Former Employee Insights
- Interview former employees to gain alternative perspectives on the company's operations, culture, and challenges.
Supplier and Customer Checks
- Engage with the company's suppliers and customers to validate the business model and assess the company's market position.
Intrinsic Value Calculation
- Develop comprehensive financial models to estimate the company's intrinsic value.
- Utilize multiple valuation methodologies to cross-validate findings.
Scenario Analysis
- Model various scenarios to assess the potential upside and downside of the investment.
- Quantify the asymmetric risk-reward profile of the opportunity.
Investment Thesis Formulation
- Articulate a clear, concise investment thesis that outlines the opportunity, risks, and expected returns.
- Identify key metrics and milestones to monitor the thesis's progression.
Internal Debate
- Present findings to the investment committee for rigorous debate and challenge.
- Encourage devil's advocate positions to stress-test the investment thesis.
Final Due Diligence
- Conduct any additional research required to address concerns raised during peer review.
- Verify all assumptions and data points.
Investment Decision
- Make a final decision on whether to include the investment in client portfolios.
- Determine appropriate position sizing based on conviction level and risk assessment.
Continuous Data Tracking
- Utilize real-time data capabilities to monitor the investment's performance against key thesis points.
Regular Management Check-ins
- Maintain open lines of communication with company management for updates and to address any concerns.
Thesis Re-evaluation
- Regularly review and update the investment thesis based on new information and changing market conditions.
- Be prepared to exit the position if the thesis no longer holds or if better opportunities arise.
Market Insights
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Investing in financial markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.