We are a research intensive manager of stock and bond portfolios.
Shaw Group was founded on the essential principles of honest unbiased research. An employee-owned firm located in Sandy, Utah, Shaw Group was founded in 2001. The firm's investment team currently consists of professionals with diverse backgrounds in fixed income trading and underwriting, capital markets, and investment banking. Shaw Group uses a bottom-up approach, applying fundamental and qualitative criteria to identify individual companies for possible investment. The firm's disciplined value-based approach determines the intrinsic value of a company through an analysis of its cash flow and an evaluation of its assets.
Investment Approach & Portfolio construction
- Quality is our focus.
- Investors should view themselves as share owners not just shareholders.
- Portfolios are built from the bottom up.
- We seek to build equally weighted portfolios consisting of 10-15 stocks.
- Fixed income and cash holdings appear in the model portfolio for security and proper diversification.
We believe research is paramount in choosing proper investments. There are many ways to evaluate a company. Shaw Group uses a proprietary disciplined approach. Our focus is on companies that are cheep in relation to their intrinsic value. We have strict requirements on cash-flow/free cash-flow growth, return on equity, return on capital, debt levels and other important financial data. Prudent use of shareholder capital is our primary focus. Once an idea is generated, Shaw Group monitors this idea for a period of time. Time gives us the added knowledge of how management is executing and how the market reacts to a company's performance. Each investment must appear attractive on our intrinsic value and technical models before it can be purchased. These two models, which instill discipline in our final stock selection process, are also used to accomplish the same discipline needed when choosing to sell an investment.