Investment - Investment Process
What kinds of companies are we interested in?
Long-term earnings sustainability and growth potential, these factors are what we are looking for in companies.
When circumstances, internal or external to companies combine to depress their valuation, we take the opportunity to invest at such attractive valuations. These circumstances may reflect short-term concerns, such as industry downturns, a cyclical low point, some imminent regulatory threat, or a small, but visible, strategic miscalculation. Management turnover can be another factor in the mix. Critically, however, they may reflect a broad-based misunderstanding of a company's healthy fundamentals. The implications of certain kinds of activities, for example, a recent IPO, spin-off or restructuring are often not adequately recognized by the market in the short term, thereby creating attractive valuations for investment
For, even if its valuation fluctuates in the short run, a good business tends to remain a good business for a long time.
What methods do we use to find these good businesses?
Both within Direct Asset Partners and across the broader Direct Asset Partners organization, we have exhaustive research capabilities. Having allocated significant amounts of time to finding the right opportunity, we are so structured as to move quickly when that occasion presents itself.
Direct Asset Partners has a successful track-record of over thirty years as a leading private equity firm. Here is some more information about the company.
We focus on high quality companies that exhibit earnings sustainability and growth, taking positions in public securities, with a bias toward being long-term investors.
Direct Asset Partners came together in the mid-1980’s, aiming to invest in growth businesses and to work closely with their managements.
Only after it has been deeply researched, and it presents a compelling long-term return, does a company make its way into our portfolio.