Investment Process

Steinberg Asset Management employs a bottom-up, fundamental investment approach. The firm focuses on stocks of companies that are often under-researched/misunderstood and selling at a discount to their "private transaction value" - the price an acquirer would pay to buy the company in its entirety.

The key element of success is SAM's ability to analyze businesses and develop appropriate risk/reward profiles. While statistics and ratios play a quantitative role, judgment is still of paramount importance. This approach encompasses the evaluation of the quality and character of a company's businesses, management, and financial structure.

A critical step to this research approach is the evaluation of management. Each management team must have demonstrated an ability to create wealth and possess a reputation for honesty and integrity.

If the company's risk/reward profile - comparison of downside risk to upside target is compelling - an investment in the company can be made.

SAM believes that a focused portfolio of businesses that are thoroughly researched and fully understood provides a superior level of diversification over an investment horizon of 3 to 5 years.