We believe that by focusing on
balance-sheet movements and forecasting
the sources and uses of cash, we can gain
a more complete understanding of our
investments.
Robert Lewis has used this approach to
identify smaller companies since he joined
the industry in 1994. At Novatera, we use
our “balance-sheet centric” models as part
of the hands-on investment process that
involves company visits and industry due
diligence.We also use risk models to
measure correlations of each investment
to the market and the other stocks in the
portfolio as part of our risk management
process.
