Lakeshore’s investment strategy is driven exclusively by a fundamental, bottom up research process focusing on U.S. equities with a market capitalization of at least $500 million. We actively follow approximately 100 companies and use both quantitative and qualitative metrics to measure the both underlying valuation and future prospects of the business in order to construct a portfolio of 20-25 stocks judged to have a high margin of safety. Quantitative measurements include high return on equity, accelerating earnings, low P/E, low price/book, strong balance sheet, and increasing dividends. Important qualitative metrics utilized include high barriers to entry, relative competitive position, and management tenure.

Most of our portfolio companies generally are not widely followed by Wall Street or are turnaround situations. Because we typically hold securities for several years, our investors benefit from both the strong fundamentals of our overall portfolio and the increased evaluation of those companies as they are “discovered” over time by other investors. Lakeshore conducts all of its research in house and does not manage its portfolio relative to a particular index.  Lakeshore has no soft dollar arrangements and executes trades only with brokers that offer the best execution or are client directed.