Focus
Phalanx Investment Partners, LLC invests in and advises companies in a multi-faceted manner, using both quantitative and qualitative measures. In our experience, companies that fail to perform ethically often underperform the market and peers and represent substantial risks many investors do not see when looking at quarterly reports, which is why we spend a significant amount of effort judging management. To us, governance is critically important. Our primary focus is on companies with a sustainable advantage, overlooked value, and potential for meaningful appreciation over time.
“In addition to governance, strategy, management, and competitive advantages, we also assess a company’s outlook for growth and its valuation using more traditional metrics such as returns on invested capital, cash flow, margin trends, debt ratios and capital structure. ”
We generally do not believe in categorizing whole sectors as uninvestable. For example, while fossil fuels contribute to global warming, they also allow countless good things to happen, such as medicines to be shipped globally. Companies should look to optimize shareholder returns by addressing the needs of their customers, employees, and communities.
“As part of our research, we try to build a thorough understanding of the catalyst pathway for unlocking value. ”