Massachusetts Water Resources Authority (“MWRA”) Employees’ Retirement System
Investment Process
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Idea Generation
Our process is driven by
internally generated and
researched ideas.
The Firm makes almost no use
of Wall Street research for our
long process, and we do not
actively share our insights with
other managers.
While all Analysts are
generalists, they often focus on
specific value chains-studying
suppliers, manufacturers,
distributors and customers
within a specialized area of the
economy across market
capitalizations.
The team additionally
generates new ideas through
its on-the-ground worldwide
travel.
Analysts share timely ideas
with the entire investment
team on our daily 8:30am
conference call. These ideas
are later reviewed in detail
during weekly group meetings.
Fundamental Research
In addition to detailed analysis of a company's SEC filings and call
transcripts, we generally visit key facilities and meet with the top
executives.
We often approach the final vetting of potential new investments
as a team that includes one or more Portfolio Managers,
dedicated Qualitative Field Analysts and our Data & Analytics
Team.
Qualitative Field Research & Data Analytics
Our due diligence process often includes fieldwork conducted by
research Analysts in conjunction with our internal Qualitative Field
Analysts, our sourcing specialists and, for select projects in limited
circumstances, outside sourcing consultants. Such research can
include interviews with a company's former employees, competitors,
suppliers, distributors and customers.
In addition, our dedicated Data & Analytics Team sources and
analyzes data to develop views on the long-term drivers for individual
companies and value chains as well as macroeconomic trends.
Based on fundamental analysis, in-house fieldwork and data
analytics, we formulate proprietary, actionable investment theses.
Every step of the process adheres to rigid compliance guidelines in
order to prevent exposure to material nonpublic information.
Portfolio Management
The "SEG International 300": We
actively monitor approximately 300
international companies that have
been fully vetted through our
research process and formally
approved by our Investment
Committee.
Once we approve a business that
meets our investment criteria, we
wait for an opportunity to buy it at
a compelling discount to its
intrinsic value.
We consistently update and
maintain intrinsic value estimates
for all Approved List businesses,
whether we own the company or
not.
Individual position weightings vary
based on several factors including
quality of business, discount to
intrinsic value and liquidity.
We will often establish a new
position at a small weighting and
build the position opportunistically.
Portfolio Managers hold sole
discretion over all investment
decisions.
Associate Portfolio Managers'
primary responsibilities include
playing devil's advocate on the
portfolio.
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