Necessity of Investment Policy

The ISP Investment Policy Statement (IPS) is a written agreement between yourself and your portfolio manager that describes how your account will be managed and how it will be evaluated. The document is updated yearly as necessary, in consultation with your ISP portfolio manager, to reflect changing market conditions and financial goals.
The IPS contains a summary of your investment goals, the strategy to be followed to achieve these goals, allowable risk exposure, any constraints on holdings or asset allocation, and a summary of investment products that may be used

Analyze the Business:

Determine the sustainability of the business, earnings drivers, barriers to entry, and competitive advantages.

Understand the Cash Flow Structure:

Focus on companies that generate cash earnings and assess the quality and character of those earnings to determine the net cash flow from the business.

Relate Cash Flow to Enterprise Value:

Examine relevant claims against net cash flow and determine the necessity of these claims to maintain and grow the business. Evaluate how management will use free cash flow. Value the cash flow stream and compare it to enterprise value to determine the attractiveness of the investment.

Evaluate Management Quality:

Identify managements with the intention and demonstrated ability to create shareholder value.

Seek Unrecognized Assets:

Uncover, where possible, hidden, undervalued or underutilized assets, especially in under-researched small- and mid-cap companies.