CONCENTRATED, HIGH ACTIVE SHARE PORTFOLIOS
WE ARE FUNDAMENTAL INVESTORS
We focus on our best ideas and conduct rigorous fundamental analysis to create value.
We seek out companies with good management teams, unique or sustainable business models, strong brands, high/improving ROIC, strong balance sheets and meaningful free cash flow.
RISK MANAGEMENT IS A KEY DIFFERENTIATOR
12th Street Asset Management believes the key to effective risk management is to:
Determine a fair value for each stock and establish a margin of safety.
Focus on capital preservation as a core portfolio management goal at the individual stock level.
The philosophy and process of 12th Street Asset Management strongly influences its three investment vehicles
12th Street Asset Management has employed the same time-tested investment philosophy since our founding.
Superior investment returns can be achieved by investing in a limited selection of good, undervalued companies, and then managing risk by focusing on margins of safety at the individual stock level and making capital preservation a priority.
Best ideas, highly concentrated portfolios of 10-25 stocks
Benchmark agnostic, go-anywhere approach seeking attractive businesses with neutral risk/reward characteristics
Strong fundamental characteristics (e.g.: management team, balance sheet, free cash flow, brand value, business strength)
Manage risk by establishing margins of safety and focusing on capital preservation
Sell discipline a function of deteriorating confidence or changing fundamentals
Willingness to hold cash when bargains are not available