Policy investing focuses on understanding the laws and regulations that impact companies. It attempts to find mispriced assets and invest in those companies before the market understands the implications to a company’s profitability and operations.
The benefit of the policy making process is that it’s highly publicized. Meetings and hearings are typically open to the public, and most proposed rule-making and comment requests are filed publicly.
Policy forces businesses to pivot. Company leadership teams must adapt to survive or risk falling behind. Changes made at these companies may impact operations and cause investors to reconsider business valuations. That’s where we believe the opportunity lies.
We achieve long-term alpha by focusing on policy and how it changes the way companies and sectors operate. Our portfolio management team and policy strategists work seamlessly to construct policy focused portfolios.