How
We Invest

Philosophy

Third River Capital Management employs a consistent and disciplined approach to intrinsic value investing. We use fundamental analysis to develop proprietary knowledge about each company we evaluate for possible investment.

We use this knowledge to create the best possible estimate of intrinsic value and strive to generate excess returns by investing at a significant discount to intrinsic value, with a long-term perspective.

Our perspective challenges market assumptions. When we evaluate investment ideas, we encourage a diversity of analyst contributions to ensure that each idea is thoroughly examined. Our clients benefit from the investment edge created through a dedicated team discussing and challenging each idea to determine its worth.

We look for:

• • Superior profitability that appears to be sustainable
• • A secure capital structure
• • Favorable industry trends

When we find a company that shows promise, we strive to clearly understand that company’s edge and analyze all facets of the business. We seek information that the market does not have. We interview and assess the management team to understand their track record and goals.

After examining all of the research components, we determine the value of the business. We develop models to project future returns and look for the catalyst that will cause the market to recognize the company’s true value.

If our thorough analysis shows a potential for high long-term returns, we monitor the share price and purchase the equity when the price is 40 to 50 percent below intrinsic value. This disciplined approach builds wealth for our clients while controlling risk.

“Search among many markets for the companies selling for the smallest fraction of their true worth.”
-John Templeton