Our investment process is based on uncovering companies that can deliver growth in earnings and cash flows. To that end, we have developed proprietary models to systematically map changes in balance sheet strength.
We believe that by focusing on balance-sheet movements and forecasting the sources and uses of cash, we can gain a more complete understanding of our investments.
Robert Lewis has used this approach to identify smaller companies since he joined the industry in 1994. At Novatera, we use our “balance-sheet centric” models as part of the hands-on investment process that involves company visits and industry due diligence.We also use risk models to measure correlations of each investment to the market and the other stocks in the portfolio as part of our risk management process