Single Equity Investments
KNOW WHAT YOU OWN
GFG Capital’s proprietary in-house concentrated equity investment strategy is designed to bring structure and conviction to investor’s portfolios. We know the time and commitment necessary in order to extract alpha from today’s markets. The GFG Focused Growth Strategy is born from identifying attractive individual companies that have potential for outsized returns. We want to own a portfolio of strong brands and businesses at an attractive value.
The portfolio can range from 8 names to 20 names depending upon market valuations and economic conditions. The more opportunities, the higher the names, but capped at 20.
We look for companies with a natural tailwind. Simply put, this means an industry with above market earnings growth, making it easier for a company to grow at above market rate.
Economic moats can be created in four distinct ways. Pool of intellectual patents, high switching costs, strong network effect, and a low cost production process which is difficult to replicate.
Stable earnings allow us to analyze future growth with a higher level of predictability. Volatile earnings can increase risk during times of economic downturns.
Dividend capabilities highlight a company’s financial health. Also, a company that has the ability to pay a dividend and increase dividends over time creates shareholder value.
Technical analysis is used to measure the sentiment and momentum of a given security. This is a tool which can assist in successfully entering or exiting positions.
A great company is not always a great investment if the price is not reasonable. We look for price to come to us rather then chase a great company.