We adhere to a conservative philosophy that has served our clients
for nearly three decades.

At the heart of our investment approach is proprietary fundamental research that uncovers companies that we determine have limited downside risk and compelling upside potential. By investing in undervalued companies, our goal is to preserve capital in unfavorable market periods and to provide attractive risk-adjusted returns over the long term.

The key tenets of Westwood's investment philosophy are Quality, Value and Risk Management. Collectively, these three components have been instrumental in navigating the fluctuations of financial markets.

  • Quality: What constitutes a high quality company? Among our criteria are companies with strong cash flows, low or declining debt levels, and rising return on equity and capital. We want to uncover and understand where the risks are in a company’s operations. We also emphasize companies with experienced management teams that can clearly articulate and execute their business plans. While lower-quality, more speculative companies will outperform at times, we feel that higher quality companies are ultimately rewarded over the long term.
  • Value: Quality is important to us, but we are also very sensitive to valuation. Not only do our research analysts seek companies with strong fundamental underpinnings, but also they must be attractively valued. We conduct extensive fundamental research to uncover misunderstood companies with undervalued earnings that are poised to exceed Wall Street expectations. When this occurs, investor skepticism tends to reverse course and lead to the realization of a company's true value.
  • Risk Management: Risk management is the cornerstone of our philosophy and our initial focus when considering individual securities. We think of risk, in an absolute sense, as loss of capital rather than relative to an index. Our risk analysis seeks to identify all existing and potential risks a company faces. Only after a company is deemed to have limited downside risk, will we then seek to quantify the upside potential. Once a security is added to the portfolio, risk management persists with an ongoing evaluation of the security’s reward/risk ratio and a strict sell discipline.

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