Scroll to Learn About
Our Investment Process
And The
Deliverables You Can Expect
From Our Team
Step 1: Quantitative Screening
First we take our...
1200 Stock Universe.
This includes all publicly listed companies in North America that meet our basic criteria
We apply our...
Our 42 Factor Screen, Including:
1. Return On Invested Capital
2. Sales Momentum
3. Sales Volatility
4. EPS Surprise Momentum
5. Earnings Revisions
6. Relative Strength
7. Price Volatility
8. Asset Turnover
9. Leverage
10. FCF Yield
These factors are back-tested and applied against our universe to derive the stocks with the highest potential to be compounders
Step 2: Fundamental Research
The top 3 quintiles from our quantitative screening and ranking process are selected for manual screening where we evaluate companies using the...
Disciplined Compounder Criteria
Consistent Cashflows
Visible Cashflows
Recuring Cashflows
Reasonably Priced
Growing Cashflows
Well-Financed
Top 10 candidates produced and evaluated
Quick Takes.
Quick takes are written on our top 3 or 4 candidates to better understand the businesses and assess their compounder potential
Initiation Reports.
A full initiation report, which is a deep dive into every aspect of the company, is produced for our highest conviction ideas
Step 3: Invest & Monitor
Quarterly Notes.
Financial Models.
Quarterly notes are a part of our continuous monitoring process, ensuring the companies are still meeting the standards we set
Models are the essential part of a valuation. All our stress tested assumptions and scenario analyses that can be compared with future results
Ad-Hoc Reports.
Ad-Hoc reports are essential for all the things we need to understand and be prepared for, so the future never catches us by surprise
How Can We Help You
As you can see, our process combines rigorous quantitative screening with deep fundamental analysis to identify true compounders that consistently outperform the market.
By joining the McLean community, you'll gain access to our full research suite, including quick takes, initiations, quarterly updates, models, and ad hoc reports. For those seeking further insights, our Pro package includes portfolio weights and trade alerts to keep you fully in the loop.
To see some of our most recent reports, please click the contact button below to speak with a team member.
