While market narratives nearly always influence stock prices, not all market narratives are grounded in facts. As narratives deviate from facts, opportunity emerges, and the KP7 team engages.
The KP7 seven-principled investment evaluation process differentiates between narratives grounded in facts and those that are not.
This systematic process creates a collection of approximately 40 fully-vetted companies that we call the ‘KP7 Cache’.
Investments move from the KP7 Cache into the portfolio and from the portfolio back to the KP7 Cache based on our tactical research. Our tactical research identifies the optimal moments to buy and sell the stock.
The KP7 Principles
7 core criteria for evaluating our investments: We seek…
01
Valuation
Exceptional discounts to our estimate of business value
02
People
Leaders with lofty aspirations, high standards, and a focus on value creation
03
Unique Relevance
Compelling, durable, and scalable value propositions
04
Business Analytics
Businesses capable of generating robust free cash flow
05
Brand
Memorable brands that excite and add value
06
Risk
To find hidden risks before they become broadly obvious
07
Tactical Research
To identify the optimal entry and exit points
How our 7 principles are deployed and guide our investment choices
From the global universe of publicly-traded equities, a company captures the attention of the KP7 team.
The KP7 team applies its first six principles to the potential investment. Each investment gets a score based on 45 specific criteria.
Our top 40 scoring investments go in the KP7 Cache.
Investments move from the KP7 Cache to the portfolio based on the seventh principle, our tactical research. Our tactical research identifies the optimal moments to buy and sell the security.
All 40 companies in the KP7 Cache have a dynamic scorecard
Scorecard
Results
