Investment Philosophy
Huntleigh Advisors, Inc. believes markets are not always efficient and, therefore, it is possible to buy companies for less than intrinsic value.
Huntleigh Advisors, Inc. uses a value-based management style that seeks to identify companies that will create shareholder value, rather than destroy it. We employ a proprietary framework to calculate a true “economic profit” as opposed to the easily distorted, accounting profits that are reported. This is utilized in our Discounted Cash Flow Model to calculate our estimate of the “fair market value” of individual stocks.
Our portfolio management team seeks to add value by building a diversified portfolio of attractively valued opportunities to:
- Preserve capital
- Produce superior risk-adjusted absolute returns
- Deliver consistent performance
Through this process, we work to identify four key drivers of enterprise value. These are profitability, competition, growth and cost of capital.
Companies we select for our portfolios have key characteristics we look for in our screening process: strong growth with excellent fundamentals, a high-quality investment team, the ability to generate discretionary cash, and high returns on investment capital. They also typically have a competitive advantage giving them pricing power for a time period before margin decay.
