Our Investment Approach

Three Circle Stock Selection Process

Basic Principles


Business Momentum

Business Fundamentals

Quantitative Research

The source of our investment returns is security selection achieved through bottom-up fundamental research. Additionally, quantitative analysis is utilized to guide the fundamental work. When both are combined, they help uncover what we believe are the three most important determinants of a successful equity investment:

  • The price paid for the business
  • The underlying strengths of the business
  • The direction, positive or negative, of current business fundamentals

We follow these “investment laws of physics” to build a diversified portfolio of stocks that, when properly constructed, has an increased probability of success. For us, successful investing is executed at the margins where seemingly small gains can lead to long-term success.

Key investment professionals have worked together since the founding of Boston Partners in 1995 and years before at a prior firm, where the investment philosophy was established.

We buy stocks that exhibit:

  • Attractive value characteristics
  • Strong business fundamentals
  • Catalyst for change

We sell stocks based on:

  • Valuation: appreciation to price target
  • Weakening business fundamentals
  • Reversal of catalyst

In our experience, portfolios with all three characteristics tend to outperform over time.