Two Point Capital Management offers a unique stock selection approach— capitalizing on the synergy created when the concepts of value and quality are both applied. We’re redefining value investing.
“Our thorough and ongoing assessment of every investment in your portfolio, our attention to constantly shifting economies, financial markets and industrial activity and trends, and our balanced approach via Value+Quality™ make us ideal for not-for-profit organizations, family foundations, and other institutions.”
— Jack McGowan
Robust and Flexible: what changing markets demand
Leveraging the Two Point standard of quality (based on a sophisticated appraisal of a company’s potential for long-term success) and value creates a robust investment style designed to be effective in changing economic and stock market conditions.
For institutional investors, this can mean a welcome measure of stability.
In evaluating each investment, we consider a myriad of factors, including:
- a company’s strategic position in the marketplace
- balance sheet
- cash flow
- investment returns
- growth of sales, cash flow, profit
- margin structure
- quality of management
- corporate governance
- management ownership
These details are integrated into an analysis of the company’s operating performance going back many years, as well as its current performance. Our conclusions form the basis for a conservative estimate of the company’s long-term success in the marketplace.
This assessment is combined with the relevant valuation analysis to determine the divergence between the company’s estimated future success in its market, its corresponding long-term value and the current stock price.
The Two Point approach has, over its history, returned solid performance throughout changing market conditions. View our performance.
Aggressive Execution: focus on continuous improvement
A Two Point Portfolio will always include stocks which, based on their quality, could remain in the portfolio for many years. But under the Two Point Approach, investment portfolios are optimized by the replacement of existing positions when new opportunities offer a superior value/quality relationship. It’s how we further strengthen a unique, innovative process.
We employ three investment strategies, tailored to risk tolerance and affording you the opportunity to optimize the composition of your portfolio.
Refined methodology: thinking smarter all the time
The Two Point Approach of Value+Quality™ is an investment style developed and refined over many years by Jack McGowan, a 30-year portfolio manager, Chartered Financial Analyst (CFA®), and founder of Two Point Capital Management.