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Investment Approach

BCM manages long only equity investments in small to midcap companies ($500mm to $15 billion in market cap) organized in the US and Canada. The portfolio typically consists of approximately 15 names. We evaluate potential portfolio companies in a similar manner to a private equity firm, except that we purchase in the open market at prices we deem attractive, not through auction processes. Investments are value oriented and we engage actively with portfolio companies to help promote sustainable growth in total shareholder return.

BCM takes equity stakes typically ranging from 2% to 9.9% in companies that we believe are undervalued, often due to weak performance. While actual holding periods vary based on constant reevaluation of opportunities, our basic time horizon for any investment is 3-5 years. We own all our positions outright, without leverage or derivatives.

We seek to identify situations with a 3:1 upside/downside opportunity. We prioritize opportunities for generating return and look for potential investments where active involvement can serve as a catalyst for generating significant, time-weighted returns.

We look to help each portfolio company identify and implement opportunities for creating significant incremental shareholder value. Often these involve operational changes to enhance revenues, reduce operating costs or lower risk profiles. We regularly challenge how companies rationalize weak comparative performance.

On occasion, we will take board positions in order to facilitate portfolio companies' implementation of necessary change. Our interest is long term, sustainable improvements in earnings levels and valuation multiples.

 
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