The SCA Process

Screening:

• Sales growth consistently > peers = share gain

• GPM > 50% = premium/products/services

• Margins/ROA improvement = business scales 

• Strong balance sheet

Company Due Diligence:

• Management call/visit

• Build financial models for “reality check” and to monitor key metrics

• Conclusion buy, watch, pass

Allocation:

• Conviction/position sizing

• Monitoring