Delaney Capital Management Ltd.

Value investing

We are value investors, pursuing hidden gems that the market is overlooking. We love growth, but only at a reasonable price. Relative value is critical to us. The value approach means we rarely buy the darling in an industry, often focusing on out-of-favour companies or industries.

Fundamental analysis

Our equity investment approach starts with a thorough investigation of a company’s financial statements. Specifically, we analyze earnings and cash flow growth potential, and balance sheet strength. Additionally, the quality and vision of the management team and industry dynamics are examined. We look for companies that are undervalued relative to their growth prospects, historical valuations levels, and industry comparables.
In-depth management interviews

If a company passes our initial tests, we meet with its management team to better understand of its growth opportunities and funding requirements, the competitive forces in its industry, and the risks and challenges the company faces. We believe we gain significant added value through the extensive number of one-on-one management interviews we conduct each year.

Expertise leads to a wide universe of companies

Our strong analytical skill set allows us to research and study companies of all sizes. This expertise is of particular importance when investing in small and mid-cap companies, an area of the market often ignored by the investment community.

Identifying the catalyst to unlock value
Finally, we look for a catalyst that will unlock value. Without one, the stock may remain undervalued indefinitely. Catalysts vary and include regulatory change, industry consolidation, corporate restructuring, a new management team, or a new product offering.

Top-down factors and themes

Layered over fundamental analysis is global awareness. We are constantly following world issues, national and international trends, and market activity.

Themes provide a different prism through which to examine how the world is unfolding and who will benefit. Demographic shifts, resource scarcity, changing technologies and rising new economies are examples of secular trends which bring new opportunities for businesses. Themes help us focus on those companies which will potentially benefit.

Source: Delaney Capital Management Ltd.