Bloomberg TV with Tom Keene
David Pearl talks about the importance of free cash flow in understanding today’s markets (November 2011)
Epoch’s Capital Markets Outlook - Replay
January 18, 2012
Despite resilient U.S. consumption, global growth will be restrained by high debt levels and contracting credit. Bill and David highlight the risks and opportunities for equity investors in a slow-growth environment.
Click here to listen>
Dividends: Beautiful, and Sometimes Dangerous
Dividend strategies are regaining popularity. But pursuing dividend yield alone can lead to poor results. Investors need to understand a company’s sources of cash and should view cash dividends, share buybacks and debt repayments collectively in assessing management’s strategy to create shareholder value. Learn More >
We are global equity investors with a distinct perspective on the long-term drivers of shareholder return.
OUR INSIGHTS
Advantage from Perspective
Long-term investment success demands a focus on essential truths that are not always obvious. We focus on investing in companies with the enduring elements that create value: free cash flow and managements committed to providing positive returns to shareholders. Like the companies in which we invest, we are committed to transparency. This includes sharing our global market perspectives and insights that help drive our investment decisions.
OUR INVESTMENT PHILOSOPHY
Investors often view a company through the prism of accounting measures such as price-to-book value and price-to-earnings ratios. Epoch adopts a different approach. Earnings growth and dividends drive shareholder returns, and they come from a single source: cash flow. We focus on companies that are growing free cash flow and allocating it intelligently.
Reinvesting cash flows in internal projects or acquisitions is preferred when those actions will generate returns above the cost of capital. Otherwise, we believe company managements should return excess cash to shareholders through dividends, share buybacks or debt repayments.
IN THE NEWS
Stay up to date on Epoch's Insights, white papers and news.