Performance
Please contact us at: marketing@jmhartwell.com to receive our latest quarterly results and annualized returns.
“Performance is Number One”
–John M. Hartwell
Process
Appraise Companies and their Business
- The investment process at Hartwell begins with a “bottom up” approach examining the fundamentals of individual companies and their industries. We seek those companies that exhibit unit volume growth and the ability to maintain pricing power.
- We find potential investments through a company-by-company analytical process. We focus on the critical variables that are most likely to influence a company’s success or failure. This process requires an intensive, highly refined analytical effort using multiple sources.
- Our research efforts are focused on premier growth companies that are leaders in their industries. Stocks that do not fit the Hartwell criteria are eliminated.
- Portfolio companies must operate within growth industries. This currently includes a broad list of technology, health care, energy, communication and service companies.
Identify the Catalysts
- We identify, at an early stage, those catalysts which will be material to a company’s growth.
- Positive catalysts for one company will likely lead to look-alikes, competitors, or suppliers
that exhibit similar characteristics. - Successful growth stock investing requires the ability to anticipate future growth.
We focus on accurately identifying future earnings potential of superior growth companies.
Typical Catalysts Include
- New products
- Technological innovations
- Expansion into new markets
- Regulatory change
- Management changes
Portfolio Construction
- We meet daily to discuss companies and portfolios
- Initial positions are 2% to 4% of the portfolio. Larger weighted positions are achieved through
performance. - Sector allocation is a byproduct of our stock selection; as industries evolve and change over
time so do our holdings. We do not mimic or manage to index weightings.
Monitor the Portfolios and Control Risk
- We constantly monitor our portfolio companies and their industries to make certain they retain
the characteristics that led to their selection in the first place. - We recognize that a selling discipline is equally as important as an effective buying discipline.
- Fundamentals dictate valuation. We do not set predetermined price targets.
- When the reasons for which we purchased the stock are no longer valid, we sell.