Investment Process

We apply a disciplined bottom-up research process with a strategic thematic overlay to identify growth businesses with durable models, market leadership, competitive moats, earnings visibility, pricing power, and structural growth tailwinds.

  • The investment process at GSP begins with a bottom-up screening of global stock markets, strategically integrating this approach with a top-down thematic overlay. This dual method allows GSP to identify businesses poised for substantial growth amid favorable structural trends. By meticulously evaluating individual company fundamentals while leveraging broader thematic insights, GSP ensures alignment with long-term growth opportunities in evolving markets.

  • GSP reviews a company's investment thesis by analyzing its business model, growth catalysts, structural growth drivers, and risks to growth. Our evaluation includes quality measures such as market leadership, earnings visibility, earnings durability (pricing power), competitive advantages, scalability, corporate governance, disruptiveness, and agility. Additionally, we employ our proprietary qualitative assessment screen to rigorously evaluate these factors, ensuring each potential investment meets our high standards for growth potential and financial health.

  • Following the qualitative screen, we delve deeper into the business's qualitative assessment, which may entail meeting with management of a company to assess key points of our investment thesis.

    We also delve deep into the business's quantitative quality measures. This includes assessing balance sheet strength, revenue growth, earnings growth, free cash flow growth, and other financial performance metrics, as well as applying various valuation overlays to determine the company's current valuation.

    Our industry assessment framework evaluates competitive forces, including the bargaining power of suppliers and buyers, threats from new entrants and substitutes, and the level of rivalry among existing firms.

  • At Grey Street Partners, we construct a high-conviction portfolio of our best-ideas, agnostic to indices, regions, and sectors. Our rigorous qualitative and quantitative analysis ensures that each investment aligns with our criteria for growth potential and financial health.

  • At Grey Street Partners, we place a strong emphasis on rigorous risk management to protect client capital. Our approach incorporates disciplined stop-loss protocols to minimize losses and utilizes sophisticated portfolio hedging strategies. Additionally, we rigorously assess risks by stress-testing our funds against systemic shocks, including fluctuations in indices, interest rates, currencies, commodities, and historical market scenarios. This comprehensive approach ensures resilience and enhances our ability to navigate diverse market conditions effectively. Stop Loss Protocol - For our flagship growth fund and managed portfolio, we apply a structured stop-loss protocol. At 20%, 30%, and 40% drawdown levels, we conduct a thorough review at each stage to reassess the investment thesis and valuation. If we have not actively de-risked the position by the time it reaches the 40% threshold, the position is automatically sold.

Circular diagram divided into four quadrants labeled Portfolio Management, Screening, Quality Assurance, and Detailed Research. Inner ring with arrows representing a continuous process, with labels for phases such as Risk Management, Defining the Universe, Data Collection, and Valuation & Industry Assessment.