Kevin McCreesh

We replace portfolio holdings later in their earnings cycle and at the high end of their valuation range with those that have the opposite characteristics. There's not one absolute number against which all ideas are compared. This is the value-added of fundamental research using our judgment and experience to gauge where companies are in their [...]

Kevin McCreesh

Many value investors will buy the cheap company when there's just a turnaround story attached to it, but we patiently wait for the fundamentals to improve first. The philosophy works because investors underreact to both positive and negative changes in fundamentals. If a company has chronically underperformed, investors dislike it, don't trust management, and won't [...]