Barr River Capital Advisors investment philosophy is consistent, disciplined and research-driven.  We believe, and academic research has validated, that market timing has not been able to generate consistent risk-adjusted excess returns for investors.

As a result, we are typically fully invested. 

We use a combination of quantitative and qualitative analytical techniques to determine portfolio candidates and holdings.  The quantitative portion of the research effort focuses upon a Discounted Cash Flow Return on Investment (DCFROI) model.  Our model generates a list of candidates with high ROI scores for us to focus our research efforts.  We know that high ROI is positively correlated with risk-adjusted excess returns. But, this is just the beginning of our stock selection process for creating the candidate pool.  The candidate pool is then subjected to traditional forms of qualitative research to learn more about the individual companies.  Our investment process continues as we develop a point of view on each company including the attractiveness of its industry segment, the key players in the segment and the relative strengths and weaknesses of the competitors.  A key research component of this effort is direct visits to the companies in question to address specific concerns, concepts and develop relationships with operating management to determine their ability to execute the corporate strategy.  For each candidate, we develop a view focused upon the key variables that will drive its success.  After our outlook is developed, we then access outside research to understand the consensus view for the candidate firm.  Then, only if our view differs from consensus and we affirm our belief in its accuracy, do we include the candidate in our holdings and set a target price.