Bernzott Capital Advisors, Inc.
(800) 856-2646
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Investment Strategy

We utilize a bottom-up investment strategy and focus on market-leading companies with significant recurring revenue, solid operating margins, moderate leverage and strong returns on capital.

We assess valuation through a variety of methods including, but not limited to, discount to market multiples (free cash flow, price/earnings, enterprise value/EBITDA, etc.), a "sum of the parts" valuation and/or a private market valuation based on comparable transactions.

We complete a discounted cash flow (DCF) model for each subject company with conservative operating assumptions and discount rates. We use these analyses to arrive at an estimate of fair market value and establish a buy price that represents a 30%-40% discount to fair market value. We believe this methodology ensures that a margin of safety exists prior to purchase.

We offer two investment strategies for our clients.  The Bernzott U.S. Small Cap Value strategy consists of companies with market capitalizations at purchase of $250 million - $5 billion.  Our Bernzott U.S. All Cap Value strategy includes companies with market capitalizations  from  $250 million at purchase and up, but will not be constrained by a capitalization ceiling.  Both strategies will generally hold 25 - 40 positions. 

We construct portfolios  without regard to the sector weighting of its benchmarks. We believe a concentrated approach is superior, because it allows the firm's best ideas to have a significant impact on returns and, in our opinion, that will ultimately lead to market outperformance. We seek long-term investment returns and resist short-term trends and momentum.
Strategy Fact Sheet:
U.S. Small Cap Value

Fact Sheet Archive

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This site is only intended for clients and interested investors residing in states and countries in which Bernzott Capital Advisors is qualified to conduct investment advisory services.

Bernzott Capital Advisors is an SEC registered investment adviser located in Lakeway, TX with offices in Camarillo, CA, and Boston, MA. We may only transact business in those states or countries in which we are registered, or qualify for an exemption or exclusion from registration requirements. For non-clients of the firm, Bernzott Capital Advisors' website is limited to the dissemination of general information pertaining to its investment advisory services.

Please contact us at (800) 856-2646 to find out if we may conduct advisory business in the state or country where you reside. Accordingly, Bernzott Capital Advisors does not, and will not, effect or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, through this website. Any subsequent, direct communication with a prospective client shall be conducted by a Bernzott Capital representative who is either registered or qualifies for an exemption or exclusion from registration in the state or country where the prospective client resides.

There are no express or implied warranties with respect to this or any linked site.

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