We are small-cap value equity investors and we don't deviate from this strategy. Annually we review our investment objectives. Institutional clients are given a monthly performance report and quarterly letter.
Our bottoms-up stock picking investment strategy includes a qualitative and fundamental approach for finding companies that meet our value criteria. ESG factors and climate related risks and opportunities are included in our stock picking analysis but it is not the only criteria used. Our valuation and financial strength criteria typically eliminates 75% of the names from our possible universe of investments. Along with our multi-level testing to find good stock investments we avoid investments in fossil fuels, firearms, private prisons, and unethical labor or lending practices.
Our ESG screening and climate change criteria is based on both science data and our personal attitude and ethical standards towards the environment. For example, we find that we can avoid investing in areas like fossil fuels and still find good investments for our clients that don't have a negative impact on the environment.