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Simple, Systematic Value Investing

Our investment approach is grounded in traditional, strict and systematic value investing. What is value investing? In its simplest form, value investing involves buying investments that are determined to be undervalued using some form of fundamental analysis. However, when well-known value investing legend Walter Schloss was prompted to describe his approach, he offered this: "We buy stocks cheap".

Value investing has taken many forms by many practitioners, but we have developed quantitative repeatable processes based on our own proprietary research. Study after study has shown that purchasing stocks selling at low valuations, as defined by several metrics such as price-to-book ratios or price-to-sales ratios, results in better than average returns. We took this well-tested theory a step further and created a unique approach to "scoring" stocks and created the Value Stock Score® strategy.

We believe that using mathematical, quantitative processes applied to the traditional value investing approach can far outperform most active management strategies. Rather than simple stock-picking or market timing, our quantitative approach results in a systematic, rules based portfolio management strategy. We feel our systematic approach is similar to the quantitative approach used to create and maintain popular stock indices like the S&P 500 or the Russell 2000. Our portfolios though are “value weighted” as opposed to market capitalization weighted. We therefore view our approach as neither active or passive management, but quantitative value investing.

The Value Stock Score® Approach

Our repeatable process revolves around our Value Stock Score® approach to individual stock selection and our focus on yield and stability for conservative income portfolios. The Value Stock Score® approach is based on a software program we developed that gives aggregated scores to stocks using value-based criteria. The portfolios managed with this approach provide clients with a performance focused portfolio that mimics a "value weighted index". To learn more, please visit

The Value Stock Score® program is used to manage portfolios with an unemotional systematic approach, but it is not automated. We evaluate each security purchased using our own rigorous analysis.