IronBridge is committed to helping our clients meet their long term investment objectives of outperforming the market while providing exceptional client service.

How We View Investing

We believe, in order to help our clients meet their long-term investment objectives, we must:
  • Identify companies that are best allocators of shareholder capital
  • Invest in those companies when they are trading at a discount to their intrinsic value
  • Manage portfolio risk to isolate stock selection as the main driver of excess return
Capital Allocation
We believe best allocators of capital are companies that:
  • Grow assets when their economic returns are above the cost of capital
  • Improve economic returns when the economic return equals the discount rate (the returns demanded by investors)
  • Shrink assets when businesses cannot earn the cost of capital

Our valuation approach is rooted in the financial axiom that the value of any investment is the present value of the future net cash receipts. We utilize economic return and asset growth to drive proprietary forecasts of net cash receipts. These forecasts incorporate analytical insights derived from fundamental research.

Valuation

 

 

 

Innovative Life Cycle Approach to Investing

The life cycle framework recognizes that all companies go through development, growth, maturity, decline, and some “re-birth.” The life cycle framework drives our analytical thinking. It helps us understand who is winning and losing in the competition for capital. It helps us ask pointed analytical questions and focus attention on the key issues likely to determine future excess return. A company’s position in the life cycle depends on the level and change of its economic return and its re-investment rate. Value creation is driven by innovation for companies on the left side of the life cycle and by productivity for companies on the right side of the life cycle. It is important to understand that value creation occurs across the entire life cycle as long as the company is effectively managing its assets.


Life Cycle Approach to Investing

Life Cycle Concept

 

Accounting Expertise
Our internally developed Economic Return on Investment analysis strives to minimize distortions in accounting information and guides our team of fundamental analysts and portfolio managers toward the winners in the competition for capital.

Valuation Expertise
We utilize an internally developed valuation model and investment tools that help our experienced investment team quickly assess whether a company is trading at a discount to its intrinsic value.

Risk Expertise
We believe our portfolios are constructed in a risk-controlled way that diminishes relative downside risk to help clients preserve capital in adverse markets.

Consistent and Repeatable Process
Discipline and proprietary tools create a consistent, repeatable process, providing analytical efficiency and timely decision making while driving team productivity and collaboration.