CSP active management
CSP Active Management builds both stock and bond portfolios as stand-alone or balanced accounts. Within our equity portfolios, we seek companies with strong sustainable businesses. These businesses will exhibit above average profitability and free cash generation and above average secular growth.
Our process is focused on getting to know the qualitative business drivers: products, services, brands, scale, assets, research pipeline, patents, networks, management, competitors, and supply/demand. Knowing the qualitative business attributes allows us to estimate the quantitative financial metrics such as earnings power, growth rate, return on equity and relative risk. These financial estimates determine our approximation of business value.
Environmental, Social and Governance (ESG) factors are integrated into our qualitative fundamental investing. We believe that embedding ESG factors in our research process enhances our knowledge and understanding of how a company achieves sustainable financial results and can identify potential risks. Best practices drive businesses to have higher profitability, more robust cash flow, and stronger sustained growth, while lowering risks.