HKIM’s Approach to Security Analysis
In making investment decisions, Hayek Kallen utilizes a comprehensive framework that includes both a top-down and bottom-up approach. The macro perspective helps to identify sectors, geographies and economic factors that may assist in locating value. The bottom-up approach is fundamental in nature and will serve as the basis for determining the company’s true intrinsic value. Key elements include cash flow, balance sheet strength, high returns on equity, income and assets, sustainable earnings growth and a track record of sound corporate governance and fiscal management. When our analysis identifies companies whose public market value is significantly lower than our derived intrinsic value, an investment would be considered.