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How does EPIC choose companies to invest in?
With very detailed research and financial modeling.
Proper analysis and financial modeling will provide a comprehensive view of value that leads to a margin of safety along with market out-performance in your portfolio. EPIC has proven this approach works by consistently outperforming the S&P 500 over the past eight years.
EPIC believes in purchasing an asset at a discount to its fair value. Most investors look for outside catalysts to drive a stock's price. At EPIC, we do not ascribe to this style of investing. Purchasing a stock is equivalent to buying a piece of a business. Over time, the ability of the business to generate cash flow will cause a company's true value to emerge. Therefore, we focus on the economics of the company's underlying business and attempt to purchase securities when the market does not perceive the same value we see. This may lead us to be early, but we are right.
Our standard investment process is to diligently examine all aspects of a business. From their financial statements, we will develop a balance sheet and an income statement that correct GAAP accounting and results in an accurate assessment of the business economics. From there, our analysis and modeling will create a comprehensive view of value that guides our decision making process. Using an exclusive product called "Indexed AdvantageTM", EPIC examines 15 specific asset classes and weighs expected return versus current risk. Running over 8 Billion scenarios, EPIC develops model portfolios that will maximize return while minimizing risk.
At EPIC, we must constantly search for companies that meet our strict investment standards. By correcting the accounting noise and distilling true economic value, we develop an accurate sense of value. From there, we can begin to build investment portfolios that have a great margin of safety and high probability of market out-performance.
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