Seeking to generate attractive risk-adjusted returns through a set of guiding principles.
At AMI Asset Management, our investment process is driven by a clear set of principles designed to pursue attractive risk-adjusted returns through all market cycles. We believe in a transparent and disciplined approach that prioritizes financial soundness, durable business models, and long-term value.
We invest exclusively in companies that derive 50%+ of their revenue from recurring sources, which we believe leads to more consistent cash flows and business durability. This focus on financially sound companies with recurring revenue models forms the bedrock of our investment decisions.
Our Growth at a Reasonable Price (GARP) strategy is designed for downside protection and rigorous risk management. We believe this approach can perform defensively during market downturns, with a focus on preserving our clients' capital.
Every investment decision is backed by extensive fundamental research. We delve deep into financial statements, management quality, competitive landscapes, and industry trends to identify companies with sustainable competitive advantages.
We invest with intention, not obligation. Every position is entered into after deep research and high conviction. Our portfolios are concentrated in our best ideas, allowing quality to drive outcomes over quantity.
AMI defines "recurring" as having products or services that are consumed within a 2-year period. Companies in AMI strategies must derive at least 50% of their revenue from recurring sources.
While high beta strategies are easy to execute, a low beta approach requires a disciplined active management process, with the goal of providing a more favorable risk-return profile for clients.
Bottom Line: Low beta construction requires a disciplined and rigorous active management process. High beta is just expensive index-hugging with concentrated risk.