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Greenfield Seitz Capital Management
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Investments
How GSCM differs from other investment management firms:

  • We focus on absolute returns, and have an excellent track record of preserving capital and outperforming S&P 500 with less risk.
  • Our investment process is research intensive, repeatable, and has been consistently applied for over 40 years.
  • Our investment team has an average of 17 years investment experience.
  • Greenfield and Seitz's family is the largest investor.
  • We focus on the long term, and typically own stocks more than 10 years.
  • We are not bound to benchmarks, and free to look for best possible investments.
  • Our average client has been invested with GSCM for more than 20 years.
  • Loyal investors give us ability to truly manage on long-term basis.
  • Small asset size and small staff allows us to trade easily and operate efficiently.
  • We use our independent research and shun popular stocks and funds.
  • Our low-turnover style is tax efficient.

A Unique Strategy
Our investment strategy employs a company-specific, growth-at-a-reasonable-price (GARP), long-term approach. We focus on the quality of a company's management, combined with our evaluation of the company's long-term earnings potential. We look for companies that have demonstrated consistent and meaningful earnings growth over a long period of time. Lastly, we use appropriate valuation measures to confirm our belief that we are getting a good value. Our emphasis is on finding attractive, well-run companies and not attempting to match or beat an index. During our analysis, we also consider a company's position in its sector, the economic framework, its local country, and the current investor sentiment.
Independent Research. Clear Communication. Disciplined Approach. Proven Results.

By investing in companies that we believe have excellent managers, we aim to invest in companies with sound corporate governance and conservative accounting. Investing in companies with long histories of earnings growth, superb people, and conservative accounting has kept us out of trouble. We are comfortable knowing whatever situation presents itself, a strong management team should make the right choice.

Our portfolio taken in aggregate is currently comprised of companies around the world with proven managers, consistent and meaningful earnings, above average return on equity (ROE), above average earnings growth, low debt, and average/low valuation.

A Unique Style

We do things differently at Greenfield Seitz Capital Management. Our analysis of management seldom involves speaking with management. We believe this unique style actually gives us an advantage. Mr. Greenfield's time as a sell-side analyst hearing unrealistically optimistic forecasts from management teams helped solidify this aspect of our process.

Unlike most investment managers, we rarely use Wall Street research. We try to form all our ideas internally, independent of Wall Street. We believe there is a herd mentality among some money managers and that we can benefit from doing our own analysis to form our own conclusions. This strategy not only allows us to potentially find under-appreciated investments, but it may also let us act on themes before the crowd has recognized them.

Our typical holding period for a stock is more than 5 years. We believe this allows our companies to potentially grow their fundamentals and that stock price appreciation should follow the improvement in fundamentals. This strategy also allows us to potentially compound our returns at a greater rate because (1) we are not hit with capital gains tax setbacks as often as others with higher turnover; (2) we would pay 15% on long-term gains, instead of a maximum of 39% or short-term gain; (3) we attempt to limit trading costs.

We believe a small investment staff cuts down on bureaucracy and improves the decision making process. Our two person investment staff is smaller than most of our competitors and we believe this gives us a unique advantage. We often think so counter to Wall Street consensus that a group of professionals would probably not agree with our ideas, thus eliminating much of our value-added return potential.

 

1722 Routh Street, Suite 760   |   Dallas, TX 75201   |   Phone 214-367-6170   |   Toll Free 800-301-8849   |   Fax 214-367-6180