Our North Star is Buying Undervalued Companies with Unrecognized Long-Term Growth Potential
As our investors know, Eagle Capital focuses intensely on the drivers of long-term value creation. We use a fundamental, bottom-up research approach that seeks to identify undervalued companies with unrecognized growth potential and stocks that are inexpensive relative to their core earnings power and long-term prospects. Our time horizon uniquely positions us to think differently about what drives and influences industries and companies.
Our investment team strives to build a portfolio of businesses with two primary characteristics:
Primary Characteristic #1
The underlying assets are strong enough to generate cash flow and maintain a value floor for the investment, even in times of stress.
Primary Characteristic #2
There is some change afoot that is unrecognized by the market and likely to be valuable in the out years.
If we get those two pieces correct, we believe that the value part of our work should defend the portfolio when times are bad, while the eventual realization of the change should generate extra returns when things go right.
These two timeless principles of Eagle are where we focus our energy and where we believe we can gain a sustainable competitive advantage. And this is the reason that our philosophy and process have been consistent since our firm’s inception, enabling us to significantly outperform the market since 1988.