Heiden Grimaud Investment Process
Top-Down Research
We define our investment universe based on macroeconomic data. Looking for companies that are situated in fast growing economies.
Identification
identify fast growing sectors
Market Size
Examining the addressable future market
Bottom-Up Research
We base our decisions on data.
Stock-Selection
Selecting companies with clearly identifiable products in a niche market with a lack of competitors.
Risk-Management
We concentrate our convictions to a higher degree but remain well-diversified to reduce idiosyncratic risk.
Heiden Grimaud Investment Process
Top-Down Research
We define our investment universe based on macroeconomic data. Looking for companies that are situated in fast growing economies.
Identification
identify fast growing sectors
Market Size
Examining the addressable future market
Bottom-Up Research
We base our decisions on data.
Stock-Selection
Selecting companies with clearly identifiable products in a niche market with a lack of competitors.
Risk-Management
We concentrate our convictions to a higher degree but remain well-diversified to reduce idiosyncratic risk.
1. Define investment criteria
Focus on high-margin, high-tech businesses with dominant market positions and limited competition.
2. Screen for potential investments
Use financial databases and screening tools to identify companies that meet the predefined investment criteria.
3. Qualitative assessment
Examine each company’s business model, competitive advantages, management team, and market positioning to understand their potential for future growth and sustained market dominance.
4. Financial analysis
Analyze historical financial statements, including income statements, balance sheets, and cash flow statements, to assess the company’s financial health and profitability.
5. Valuation
Use various valuation methods, such as discounted cash flow, price-to-earnings ratio, and enterprise value-to-EBITDA, to determine the intrinsic value of each potential investment and identify undervalued opportunities.
6. Industry analysis
Evaluate the overall industry landscape, including market trends, technological advancements, and potential disruptors, to assess the sustainability of the company’s competitive advantages and growth prospects.
7. Risk assessment
Identify potential risks and challenges that may impact the company’s performance, such as regulatory changes, economic factors, or competitive pressures, and assess the company’s ability to mitigate these risks.
8. Portfolio construction
Select the most promising investment opportunities that align with the predefined investment criteria and construct a well-diversified portfolio to minimize risk and optimize potential returns.
9. Monitor investments
Regularly review the performance of the portfolio, staying informed about developments in the industry and company-specific news, and adjust the portfolio as needed based on changes in the investment thesis or market conditions.
10. Exit strategy
Determine optimal exit points for each investment, based on factors such as target returns, changes in the company’s fundamentals, or shifts in market dynamics, and execute the exit plan accordingly.
1. Define investment criteria
Focus on high-margin, high-tech businesses with dominant market positions and limited competition.
2. Screen for potential investments
Use financial databases and screening tools to identify companies that meet the predefined investment criteria.
3. Qualitative assessment
Examine each company’s business model, competitive advantages, management team, and market positioning to understand their potential for future growth and sustained market dominance.
4. Financial analysis
Analyze historical financial statements, including income statements, balance sheets, and cash flow statements, to assess the company’s financial health and profitability.
5. Valuation
Use various valuation methods, such as discounted cash flow, price-to-earnings ratio, and enterprise value-to-EBITDA, to determine the intrinsic value of each potential investment and identify undervalued opportunities.
6. Industry analysis
Evaluate the overall industry landscape, including market trends, technological advancements, and potential disruptors, to assess the sustainability of the company’s competitive advantages and growth prospects.
7. Risk assessment
Identify potential risks and challenges that may impact the company’s performance, such as regulatory changes, economic factors, or competitive pressures, and assess the company’s ability to mitigate these risks.
8. Portfolio construction
Select the most promising investment opportunities that align with the predefined investment criteria and construct a well-diversified portfolio to minimize risk and optimize potential returns.
9. Monitor investments
Regularly review the performance of the portfolio, staying informed about developments in the industry and company-specific news, and adjust the portfolio as needed based on changes in the investment thesis or market conditions.
10. Exit strategy
Determine optimal exit points for each investment, based on factors such as target returns, changes in the company’s fundamentals, or shifts in market dynamics, and execute the exit plan accordingly.
