ABOUT: THE INVESTMENT APPROACH
ALIGNING OUR INTERESTS
What distinguishes Cannell & Co.?
Our clients’ success is our success. Our interests are aligned with those of our clients, as we invest side-by-side with them. To quote Mr. Cannell, “We eat our own cooking.”
We provide personalized service with an in-depth understanding of our client’s goals and financial circumstances. Security selection, asset allocations, purchase guidelines, and tax management are customized to a client’s needs. Each account is individually managed.
Our fees are straightforward and transparent.
We seek value over the long term by identifying companies with quality management, a proven track record, a competitive advantage, sound financials, and the opportunity for growth. Other factors we look for are a low cost of raw materials, a modest political profile, a high return on stockholders' equity, free cash flow, and a material management stake in the business.
Questioning dogma allows us to identify opportunities in evolving industries, disruptive technologies, and new concepts. Focusing on unduly depressed securities that appear to provide minimal market risk but offer potential for substantial appreciation also draws our attention.
With decades of experience, broad institutional and company access, we conduct independent fundamental research. Research is conducted with an eye towards being owners — not traders.
We build concentrated portfolios that are risk-managed without over-diversification. The holdings are rebalanced and only sold when there is a change in fundamental investment thesis, or the valuation changes relative to our growth expectations. Fixed income securities are usually held to maturity.