Lakeshore Capital looks for emerging, overlooked investment themes and employs proprietary fundamental analysis to identify related companies that have the potential to provide superior long-term performance.
- Actively follow approximately 100 U.S. companies with market caps of at least $500 million searching for companies that are judged to combine attractive long-term capital appreciation potential with a high degree of safety.
- Relevant factors considered include: high return on equity, accelerating earnings, low P/E, low price to book, strong balance sheet, increasing dividends. management tenure, strong competitive position, high barriers to entry.
- Portfolio companies are generally “under followed” and “under valued” by Wall Street and/or are turnaround situations.
- Companies are typically researched for an extended period before being added to the portfolio.
Portfolio consists of 20-25 securities. Companies are generally equally weighted and no position is greater than 10%. No arbitrary sector/industry limitations are imposed.
Securities will be sold if the original investment thesis is fundamentally impaired or if the performance outstrips the fundamentals. If a company continues to perform as expected the security will be held indefinitely.
The portfolio is designed as a conservative core investment where capital preservation is of prime importance.