Long-Only Strategy

Investment Philosophy

PPC is a fundamental research organization whose method to selecting stocks on the long side involves looking for companies that have:

• high free cash flow yields
• the ability to grow their cash flow consistently over time
• the talent to reinvest their cash flow to maximize returns on invested capital

Research Approach

PPC’s research approach is a funneling process that utilizes proprietary screens to isolate companies with specific characteristics that work for the portfolio. Financial statement analysis further refines the universe of companies. Finally, a more exhaustive process is undertaken that involves reading 10K’s and 10Q’s, speaking to and/or meeting with management and, in certain cases, doing independent channel-based research on the company and their products.

Stock Selection

Valuation is a major determinant in choosing long positions, and sustainable free cash flow yields in excess of 10% are a valuation guideline. PPC seeks to identify businesses that it believes have little long-term downside risk. See  link to our long-only strategy tear sheet for our historic returns and other information:

• Long-Only Tear Sheet