AMI Asset Management believes that in order to generate superior long-term returns, a strategy must perform in-line with its benchmark in bull markets, but more importantly outperform in bear markets. AMI looks to achieve this by utilizing a GARP strategy which focuses on investing in companies with recurring revenue business models. The team defines recurring revenue business models as those with products and services that have a life span of less than two years, and thus must be replaced frequently. AMI believes that a recurring revenue business model allows a company to grow at a more predictable and sustainable rate and reduces volatility in its earnings.
Outperformance over a full market cycle can be achieved by keeping pace with the benchmark in up cycles, while significantly outpacing it in down cycles.
Focus on companies with recurring revenue business models, which is defined as having products and services with lifespans less than two years.
Invest in highest conviction ideas utilizing bottom-up process to identify companies with good growth prospects, strong balance sheets, superior management and positive underlying industry economics and trends.
GROWTH AT A
Buy select growth companies at attractive valuations and take advantage of temporarily mispriced names relative to the company’s long-term outlook.
The big news for investors this week is not about the new President, the impeachment, or Covid stimulus and relief. The big news is that a housing boom is under way. Housing starts rose for the fourth straight month in