Press & What's New

Louis Rukeyser’s Mutual
Funds, June 2010
Sound Shore's disciplined, fundamental value investment process was recently profiled
click here.


Investment Process

Investments are based on fundamental and detailed research and analysis, with particular emphasis on stocks with low absolute and relative P/E ratios:

From a starting universe of the 1,250 largest U.S. equities, we methodically identify the least expensive based upon absolute P/E and P/E versus a company’s historic norms.
The opportunity set of approximately 250 are subjected to our “value check” process which confirms valuation attractiveness.
We then conduct thorough fundamental research on the resulting list of 80-100 companies, which typically includes visits and conversations with company management, competitors, customers, analysts, etc.
We develop our own earnings, cash flow, and balance sheet models and cross check our own normalized estimates with company management and also with Wall Street analysts.
We prepare detailed valuation models to develop price objectives.

We sell a stock if the company fails to meet our fundamental performance objectives or when it reaches our price target.

P/E or price to earnings ratio is the value of a company’s stock price relative to company earnings.