Fairpointe Capital LLC
Fairpointe Capital LLC is a 100% employee owned registered investment advisor located in Chicago, Illinois. The firm manages equity and balanced separate accounts for institutions and individual clients, utilizing two proprietary strategies: Mid-Cap Core and Focused Equity. Fairpointe also sub-advises the AMG Managers Fairpointe Mid Cap Fund, the AMG Managers Fairpointe Focused Equity Fund and the Parvest Equity USA MidCap Fund, available to non-US investors. The AMG Managers Fairpointe Mid Cap Fund has received two Lipper Best Fund Awards* in 2011 in the Mid-Cap Core Fund category for the prior five and ten year periods ending 12/31/2010. Total firm assets under management are $4.6 billion as of September 30, 2016.
The firm employs a fundamental bottom-up, valuation-based process to select companies that are inefficiently priced relative to their earnings growth outlook and cash flow generation over the next three to five years. We have a preference for companies whose products or services make their customers more efficient or profitable and are critical to their success. We apply a strict valuation discipline to manage downside risk and provide above-average upside potential. In general, we look for companies with compelling business models, attractive valuations, financial strength and experienced management teams. The investment process includes in-depth internal research, enabling us to identify financially sound companies that offer solid growth prospects, while selling below intrinsic value. Idea generation is driven by extensive knowledge of companies and industries, historic perspective and the ability to identify catalysts for positive change. We define the Mid-Cap universe as companies with capitalizations between $1 and $15 billion; for Focused Equity, we look for companies with market capitalizations greater than $1 billion. We examine the following quantitative criteria: Top line growth in units and revenue Valuation: attractive P/E multiple to earnings growth outlook, price to revenue, price to cash flow and relative P/E Low leverage In addition to quantitative measures, we look for companies with the following fundamental characteristics: Industry leader with a focused business model and the ability to grow market share Experienced management Strong or improving balance sheet Direct contact with management is an integral part of our fundamental analysis. These meetings and conference calls typically focus on issues related to the business outlook, market share/competitive position and company strategy.
Address: 1 N. Franklin Street, Suite 3300, Chicago, IL 60606, USA
Phone: +1 312 477 3300
FAX: +1 312 477 3400
