International Small Cap Investing
The International Equity strategy invests in a concentrated portfolio of non-U.S. companies that generate high free cash flow, have strong balance sheets and consistently return cash to shareholders and have market capitalizations between $100 million and $2 billion at purchase.
Companies that fit our investment criteria for high free cash flow tend to outperform broad market measures over the long term. The equity in these companies tends to protect capital in down markets and share price volatility is often lower than the market averages. Additionally, these companies typically pay dividends and have the capacity to maintain or even increase those dividend payments in poor economic environments.
We believe a concentrated portfolio of these types of companies, identified through financial statement analysis and thorough research, will outperform the markets in the coming decades.