Institutional
Clients

Eagle Ridge manages three core Equity strategies: Global Quality, Relative Opportunity, and International Quality. Each follows the same bottoms up, fundamental investment process.

How We Work With Clients:

We explain the investment process and current investment rationale
We articulate the drivers of investment performance

We can advise on complementary strategies to increase diversification of a broader portfolio
We can provide other investment resources on request

Eagle Ridge’s Investment Strategies are available through the following vehicles:

Separately Managed Accounts

Please call us directly at: 203-227-4515 to inquire about opening a separately managed account.

Broker Platforms

Charles Schwab: Schwab Marketplace
TD Ameritrade: TD Separate Account Exchange
Fidelity Investments: Fidelity Separate Account Network

Turnkey Asset Management Platforms

Envestnet
SMArtX Advisory Solutions
Adhesion Wealth
TD Ameritrade’s Model Market Center
Amplify Technology, LLC

Eagle Ridge is open to establishing new investment management relationships with third-party advisors and/or platforms not listed here. Please contact us.

More information on Eagle Ridge strategies can be found in the following databases:

Our goal for the Equity exposure in a portfolio is to generate competitive long-term returns with a lower risk profile relative to the respective benchmark. We accomplish this by carefully analyzing the results of our proprietary research on individual companies to create a concentrated portfolio diverging from the benchmark.

1. Quantitative Screening

Define a universe based on country and size
Run a multi-factor screen focused on quality and valuation to identify potential investment candidates
Based on the strategy, further reduce the universe into a ranked, dynamic Coverage List
Assess the Coverage List to determine those names that move forward in the research process

2. Qualitative Review

Business Quality
- Consistent ROIC among the highest in the company peer group
- Appropriate debt levels with the ability to self-finance
- Demonstrated operating leverage within the business model- historical evidence vs. Management promises
Sustainability of Business
- Long-term market opportunity for goods or services- not transient conditions
- Proprietary distribution network, technology or brand which creates a long-term barrier
- Historical ability to drive growth organically
- Innovation through a higher allocation of resources to R&D, Sales and Marketing in relation to competitors
- Sensitivity to business cycle in relation to cash flow generation- the historical ability to generate cash during a down market
Market Growth
- Secular trend driving or hindering the market
- Potential catalysts
- Regulatory or legal barriers which hinder the market
Shareholder Interests Pre-eminent
- Management’s interests aligned with shareholders
- CEO letters show company driven by cash flows
- Allocation of capital appropriate for business- no empire building or constant financial engineering
- Transparency in financial reporting
- Board oversight and independence

3. Valuation

In order to invest, an attractive opportunity must have a reasonable valuation
Eagle Ridge examines a company’s valuation through 2 lenses:
- Discounted Cash Flow Model: projects 5 years of cash generation
  - Projections focus on current market growth, segment structure, and earnings leverage while accounting for its historical record
  - The discount rate is calculated using the current and historical betas
- Projected Earnings Model: Projects 4-year normalized earnings and P/E multiple
  - Based on historical averages for company and the index
The valuation is stress tested based on historical lows in growth and margins to ensure an appropriate margin of safety

4. Concentrated Equity Portfolio

Concentrated portfolio of companies trading at a discount to their intrinsic worth
Investment committee approves all buy/sell decisions
Full positions established at purchase
Strategy specific limits on security and sector weights

Let’s have a conversation on how we can work together!

Institutional
Clients

How We Work With Clients:

Eagle Ridge’s Investment Strategies are available through the following vehicles:

Separately Managed Accounts

Broker Platforms

Turnkey Asset Management Platforms

More information on Eagle Ridge strategies can be found in the following databases:

Transparency

Simplicity

Independent / Unbiased

Relationships

Consistent Investment Process

Communication

Team Player

Blog

InstitutionalClients

How We Work With Clients:

Eagle Ridge’s Investment Strategies are available through the following vehicles:

Separately Managed Accounts

Broker Platforms

Turnkey Asset Management Platforms

More information on Eagle Ridge strategies can be found in the following databases:

Transparency

Simplicity

Independent / Unbiased

Relationships

Consistent Investment Process

Communication

Team Player

Blog

Institutional
Clients