Cortland Associates employs a value-oriented, risk-averse investment approach that seeks to achieve superior investment results with a minimum degree of risk. The firm develops their investment ideas through both proprietary research and non-Wall Street industry contacts. They evaluate basic financial statistics including stock price in relation to cash flow and book value, debt ratios, historical trends in gross, operating and pre-tax margins, returns on assets and returns on equity. These statistical evaluations, combined with an evaluation of a company's fundamental business operations, give the firm an initial determination of the potential investment's value relative to other investments.Companies that pass the firm's initial review are subjected to thorough evaluation of their operations. Cortland Associates seeks to understand a company's products, markets, quality of management, research and development efforts and competition. This process includes visits to company facilities and interviews with management, employees, suppliers and competitors. Cortland Associates seeks to identify a company's competitive advantages resulting from superior merchandising, proprietary technological positions, unique manufacturing efficiencies or favored niche positions. The firm is particularly interested in the financial controls and major variables that could affect a company's profitability.Cortland Associates will sell or partially sell a position if there is evidence of deterioration in the fundamentals of a company or its industry and/or if the stock meets or exceeds their internally generated valuation level.
