Core Focus

Investment Process

Bottom-up Fundamentals

Within a collaborative environment, Cavan Capital LLC focuses on bottom-up, fundamental research to identify companies which we believe will have durable growth characteristics. With a combined 45 years of institutional investment experience, Cavan Capital has a strong foundation to vet potential investment candidates based on:

 

Growth – Evaluate the long-term market opportunities and competitive structure of the industry/company seeking to identify the leader.

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Valuation - Evaluate whether security prices fully reflect our analysis of prospective and sustainable growth.

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Quality - Invest behind experienced and talented senior corporate managements whose corporate balance sheet strength can fund their future growth plans.

 

 

 

Global and U.S. macro-environment is established to create a framework to analyze stock fundamentals.

 

Cavan Capital focuses its research on global/domestic growth stocks in the Consumer, Healthcare, Financial, Technology, and Industrial Sectors.

 

Street research, company management meetings, corporate webcasts, financial publications and an analytical dialogue with investment professional colleagues serve as informational pipeline for stock fundamentals.

 

In-house database ranks 1-year and 3-year EPS and EBITDA growth rates, current year valuations, and confidence of management delivering against expectations.

 

Each portfolio is constructed from our favorite stock candidates, cognizant of S&P500 weights as well as industry and common factor risk exposures.

 

For the U.S. Large Cap universe (above $10B market cap), Cavan Capital conducts fundamental research and strong valuation work, building upon our long-term experience in this investment style.  This investment approach is consistent with the the proven alpha-generating process that we have used for over 19 years at AllianceBernstein*.

 

For the less-researched U.S. Small Cap universe (less than $10B market cap), Cavan Capital primarily focuses on fundamental opportunities relative to “street” consensus EPS estimates. Positive EPS surprises are usually well rewarded in this market cap segment due to the inherent under-coverage of these stocks (only four sell-side analysts). Also, strong price momentum (a success factor) contributes to alpha. Lastly, Cavan Capital applies relative valuation comparisons to our favored small cap stock candidates.

* U.S. Large Cap Growth