Simon E. Porter
Simon Porter is a long-term, value-oriented Portfolio Manager with a capital preservation mentality.
With extensive experience auditing private and public companies in a wide range of industries, Simon has valuable insight into financial pressure points, disclosures and estimates that management teams might manipulate. He brings these insights to bear when evaluating the risks against potential returns of any investment decision.
Simon values transparency and is readily available to discuss specific portfolios, asset allocation, and general financial matters. He personally invests alongside his clients.
Portfolio Construction and Management
Simon’s client portfolios typically comprise a manageable number of individual equity securities that are sensibly diversified by industry, geography, and market capitalization.
Simon’s investments typically exhibit a number of common attributes that he believes generate compelling risk-adjusted returns over time. These include:
Strong financial condition. Strong underlying financial health provides management with financial flexibility, alleviates liquidity concerns, and increases the likelihood of sustainable increases to dividend payouts.
Shareholder-oriented management. To complement his rigorous quantitative financial analysis, Simon regularly engages with company executives to evaluate their track record, motivation, integrity, and ability to execute a business plan.
Cash flow that is consistently increasing. Simon looks for cash-generating businesses with management that he believes will redeploy capital in a way that maximizes shareholder value.
A competitive advantage. Simon seeks to understand the “secret sauce” (whether derived from a proprietary technology, operating discipline, or corporate culture) that fortifies a company’s relevant strengths and prospects in a given industry.
Income generation. Simon prefers investments that generate a dividend stream.
Attractively valued. Simon gives careful consideration to both absolute and relative valuation metrics to ensure that an existing or potential investment’s current stock price represents a meaningful discount relative to what he sees as the company’s ultimate potential value.