Sounding Capital manages private funds that invest in domestic equities on a long only basis utilizing a fundamental-driven research strategy. Our objective is to create a concentrated portfolio of value-oriented stocks with idiosyncratic return profiles that will outperform their benchmark on a long-term basis. Various metrics are utilized to determine situations where we believe a company’s intrinsic worth is not reflected in the current valuation. Appropriate risk levels are assessed as measured by balance sheet strength and ability to generate cash flow.

Investment Considerations

When evaluating new investment candidates Sounding Capital considers a number or factors. These include determining the company’s commitment to shareholders (dividend and buyback history), ability to continue returning capital to shareholders (dividend coverage and payout ratio), ability to fund growth opportunities (level of cash from operations, capex and balance sheet flexibility) and financial strength (net debt to EBITDA, debt to equity ratio, etc.). Our goal is to identify companies who have the financial ability to invest in growth while returning substantial capital to investors and whose valuation does not currently reflect the long-term benefits of such activities.

Typical Screening Process

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