IronBridge Process

The Life Cycle framework helps determine key drivers of outperformance.

Life Cycle Approach to Investing

Life Cycle Concept

The Life Cycle framework recognizes that all companies go through development, growth, maturity and decline and some "re-birth." The Life Cycle framework drives our analytical thinking. It helps us to understand who is winning and losing the competition for capital. It helps us ask the right analytical questions and focus attention on the key issues likely to determine future excess return. A company's position on the Life Cycle depends on the level and change of its economic return and its re-investment rate. Value creation is driven by "innovation" for companies on the left side of the Life Cycle and "productivity" for companies on the right side of the Life Cycle. It is important to understand value creation occurs across the entire Life Cycle as long as the company is doing the right thing with its assets.

Regardless of its position on the Life Cycle, any company represents a potential investment if:

  1. Company capital allocation priorities are aligned to the Life Cycle classification to which they belong
  2. Company shares trade at a discount to intrinsic value

Investment Process

A company's intrinsic value is the present value of its expected net cash receipts.

IronBridge's experienced investment team is trained to use proprietary tools and research systems to identify the best allocators of capital. After rigorous fundamental and qualitative analysis, IronBridge's analysts calculate proprietary estimates of intrinsic value.

Investment Process

These proprietary estimates of intrinsic value are used to capitalize on buying and selling opportunities.

Portfolio construction utilizes "Dual Diversification" across both Life Cycle stages and sectors to help isolate stock selection as the main driver of excess return and minimizing systematic risk.