At Croft Leominster we are value oriented with a contrarian bent. The firm is set up around idea generation, which come from a variety of sources - both internal and external. We're classic stock pickers who look at stocks from the bottom up.
We are focused on value, and do not limit ourselves by market capitalization; this allows us to opportunistically take advantage of changes in the market. We apply our investment process to companies of all sizes and sectors, identifying what we believe are undervalued small, mid and large-capitalization stocks.
We are committed to a long-term, patient investment strategy. We seek to buy stocks at "60-cents-on-the-dollar" and hold them for at least 3-5 years. We believe this offers our investors the potential for higher returns over time.
We believe our approach to value is a sensible way to invest for the long-term. We try to buy shunned or overlooked stocks when no one else is buying - at a price below the company's intrinsic value. A gap between a company's business value and its current stock price creates opportunities. We focus on depressed stocks that are temporarily out of favor, and after carefully evaluating the companies' strengths and risks, invest in those whose stock prices don't fully reflect their true value.
Our investment strategy at Croft Leominster is based on the generation of stock ideas and conducting due diligence research and analysis. We follow a methodical multi-step process for picking stocks resulting in a portfolio that represents our best ideas.
Over a year's time, we may consider more than 1000 stock ideas. These originate from inside the firm or arrive through a variety of external experts and research firms. We have a staff of analysts and get stock ideas from other money managers we respect (our network of 'deep-thinkers'), independent research firms and Wall Street analysts.
- We whittle these down to roughly 500 by looking for acceptable valuations. We use traditional valuation measures such as price-to-earnings ratios, but also look for strong cash flow, quality assets, and a potential for growth that are not reflected in current stock price.
- We narrow the list to 200 stocks that we continuously monitor focusing on companies that offer:
- A catalyst for growth
- Growth at a reasonable price
- Contrarian plays
Our portfolio represents the 80 or so best ideas of the above.
Please contact us at 800 746-3322 or use our info request form to find out more about the services that Croft-Leominster has to offer to retail and institutional investors.