The SCA Process

We employ a bottom-up research process to discover the best companies across the globe. We don’t target specific sectors or geographies; instead, we look for the best fundamentals.

Screening:

  • We screen ~65,000 companies each year.

  • We look at fundamentals: sales growth, profit margins, return on assets, strong balance sheets.

Company Due Diligence:

  • We talk to over 350 unique companies on an annual basis. We gather information from management teams and cross-check it against information from competitors and industry analysts.

  • We build financial models for scenario analysis and to monitor key metrics

  • We come to a conclusion to buy, watch, or pass after every interaction.

  • We continue due diligence for owned companies and speak with management once per quarter.

Allocation:

  • Individual stock weights reflect our conviction in an investment.

  • We consider valuation, depth of knowledge of the industry and management team, balance sheet strength, and resilience in the face of economic turbulence.

Risk Management:

  • We continuously monitor investments and risk.

  • We have maximum sector concentration but do not target certain levels of sector exposure.

  • We have maximum country weights but do not target certain levels of country exposure.

  • We conduct weekly reviews of leading indicators, liquidity, and portfolio holdings.