Our Philosophy

We use a bottom-up fundamental evaluation to identify companies with industry-leading positions, favorable competitive environments, excellent management teams, and long-term value-generating capital allocation decisions.

Common characteristics of the investments we seek are:

  • Core franchise strength with long-term durability at the industry and company level

  • Superior fundamental outlook

  • Strong free cash flow generation

  • Excellent management team

  • Capital allocation decisions and opportunities which have been well aligned with long-term shareholder value creation.

We are ardent in our belief that strategic use of cash exceeding a company’s organic growth needs can have a significant impact on the long-term value of an investment. And, very importantly, that this value creation (or destruction) is not widely considered by the shorter-term focused markets.

Capital Allocation:

  • Opportunities vary by company and over time

  • Unemotional decision making

  • “Highest & Best” use

  • Teledyne (Singleton) vs General Electric (Immelt)

Investment Strategies

U.S. Large Cap Portfolio

U.S. Mid Cap Portfolio

Responsible Investing and ESG

Value Creators Capital considers environmental, social, and governance (“ESG”) issues an integral component of the investment decision making process.   Consistent with the Principles for Responsible Investment (“PRI”), we believe a thorough analysis of ESG issues can lead to better informed investment decisions around fundamental characteristics such as long-term profitability, sustainable growth, and the financial risk of companies.  Value Creators Capital has always incorporated ESG factors into the investment decision making process because it is the right thing to do.    

Of special focus are corporate governance factors including management incentives, board structure, minority shareholder rights, and capital allocation philosophy.  It is our view that companies with sound corporate governance foundations generally increase their probabilities of meeting future environmental and social responsibilities in addition to generating improved long-term value creation for all stakeholders.