Hurley Capital provides multiple investment management solutions including conservative equity and fixed income based portfolios and ETF/mutual fund-based asset-allocation models.
In our flagship All-Cap Value model portfolio, we use a more dynamic approach to asset allocation and our stock-based investment process can be broken down into 3 steps:
Step 1: Fundamental Sector Analysis
Identify an attractive sector using internal and external fundamental research. A strong sector displays the combination of positive secular trends, discounted valuations and understandable risks.
Step 2: Valuation – Find a Strong and Inexpensive Company in that Sector
Screen for companies in identified favorable sectors that fit the investment criteria. The potential investment should have a high free cash flow yield, attractive ROIC, and strong growth prospects pursuant to the identified positive sector trend.
Step 3: Fundamental Research
Undertake a comprehensive analysis of potential risk factors that may include interviews with companies’ management, regulators, competitors, suppliers, customers, and other industry experts. Research on the target management team focuses on management track record/credibility, business strategies, and capital allocation strategies.
Look for positive company-specific catalysts, which may include restructuring, management change, misunderstood assets, little sell-side research coverage, spin-offs, lack of competitors to be compared to, debt-paydown, or emergence from bankruptcy.