Fundamental Approach to Capital Preservation

Equity Philosophy

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.

Strategic Investment Principles

Long-term Focus and Capital Preservation

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.

Recurring Revenues

Focus on companies with recurring revenue business models, which are defined as having products and services with lifespans of less than two years.

Fundamental Approach

Invest in the highest conviction ideas utilizing a 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 Reasonable Price

Buy select growth companies at attractive valuations and take advantage of temporarily mispriced names relative to the company’s long-term outlook.