Equity investing is a risky endeavor. We combat the risk that we can control through diversification across economic sectors as well as prudent investment selections with the intent of meeting the goals and risk profiles our clients. As for the risk beyond our control, Parrish Capital investment philosophy embraces the notion that financial flexibility allows investors to expand their risk tolerance which relies on the willingness but most important the ability of an investor to take on risk.
Investing in growth assets specifically equities is inherently risky, but to an even greater degree than fixed income investments, equities and other high volatility asset classes are unforgiving if time horizon and spending needs are not considered. For this reason, Parrish Capital stresses that investors only invest in higher risk assets if their “liquidity window” is covered for at least one business cycle, which we estimate to be 3 to 5 years.
Parrish Capital’s investment philosophy is based on fundamental analysis anchored by a Standard Research Process (SRP) which serves as the cornerstone of investment selections and portfolio construction. The core of this process rests on our belief that earnings power, forecasted growth, and changes to market assumptions surrounding both dictate near and long term equity price performance. Portfolio positions are established with a vision of holding each position long term with one business cycle as the base (3 to 5 years). Both quantitative and qualitative factors are considered in analysis with valuation being centric in the final decision making process.
Parrish Capital maintains a watchlist of potential candidates each meeting our rigorous proprietary pre-screening. The next phase of the Standard Research Process (SRP) encompasses a “Roadmap to the Portfolio” which includes sell side research report synthesis, competitive landscape review, critical factors/catalyst review, stock specific risk review, financial model review, valuation review, and lastly a recommendation summary. Through our rigorous process we offer several model stock portfolios which are customized to meet client needs.