Our Investment Philosophy
At Granite we believe in the following...
Finding the Right People
There is no substitute for experience. We have built our company by developing teams of experienced professionals with a history of success and a work ethic whole-heartedly devoted to investment excellence. Creative and naturally skeptical, our investment professionals are conceptual, independent thinkers, who demonstrate enduring curiosity, open-mindedness and a zeal for discovering new and exciting investment opportunities. Competitive and results-oriented by nature, they accept individual responsibility and thrive on the challenge of surpassing expectations. Realistic and practical, they recognize that working as a team can add value for them and, most importantly, our clients.
Creating the Right Environment
Achieving exceptional results requires the right work environment and culture, one that allows self-motivated, challenge-seeking individuals the optimum platform to excel. While we expect our investment professionals to work within a guiding framework of investment principles, we allow them the freedom to evolve their own unique strategies for generating new investment ideas. To assist in allowing the process to evolve, we employ a team-oriented approach that combines peer scrutiny with individual responsibility. This respectful but frank questioning by the investment team assists us in identifying weaknesses of our proprietary research before we commit our client’s capital.
High Quality Investing
For years we have developed a variety of investment strategies that seek growth of capital from investments in high-quality companies. We define high quality companies as those which have management that have demonstrated a past record of success, those we believe exhibit superior business models and a strong catalyst which is expected to drive gains in discretionary free cash flow, revenue and earnings and returns on invested capital. The goal: to find a company where we strongly agree with management’s vision of how to grow the company and sustain its competitive advantages for the long run. In short, we seek companies that we can consider “partners” in our efforts to build wealth for our clients.
The Importance of Consistency
Having a consistent investment process and controlling risk through varied markets is critical to long-term success. In our view, disciplined portfolio management is the business of generating incremental returns which are the result of many careful investment decisions which may produce consistent results year after year; not substantial out-performance in one year followed by severe under-performance the next.
Fundamental Bottom up Investing
We believe the greatest way to add long-term value for our clients is from thorough, fundamental, bottom up investing and having superior knowledge of the companies in which we invest. We also believe the best way to generate excess return is primarily through security selection not sector rotation or trying to time the market.
Investment excellence is not only about industry and company knowledge, but more importantly about independent thinking and challenging conventional wisdom. Original research is the core of our investment process and all portfolio managers are also analysts. Each member of the investment team is responsible for researching and recommending investment ideas.
Catalysts for Positive Change
The market is often slow to recognize how change will benefit some businesses and undermine others. By investing early and at the right price in companies positioned to benefit disproportionately from change, we may lower our clients’ acquisition cost. This also maximizes the potential for capital appreciation as the market comes to recognize the dynamics of change.
Personalized Client Relations
Granite recognizes that every portfolio has unique characteristics and objectives; therefore, each account is managed with personalized service adhering to client goals. We strongly believe ongoing personal communication and good service form the foundation for building successful client relationships. Accounts are reviewed in person with clients at intervals selected by the client.