Investment Lifecycle and Strategies

WHERE WE DIFFER FOCUS ON BUSINESS QUALITY & VALUE CREATION: At Hayden Capital, we focus on Earnings Growth (a proxy for value creation). The two components to forecast future earnings growth are: Return on Invested Capital x Reinvestment Rate. Return on Invested Capital ("ROIC"): "How much is the business able to earn on new projects incremental capital reinvested into the business?" Reinvestment Rate: "What percent of earnings is the company putting back into their business?" The higher the incremental ROIC, the more money the management team should reinvest in their business. HAYDEN CAPITAL 9

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