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Neumeier Poma Investment Counsel, LLC

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy


SG 01. RI policy and coverage


01.1. 責任投資アプローチをカバーする投資ポリシーを策定しているかどうかを明示してください。

01.2. ポリシーの構成要素/種類と対象範囲を示してください。

          Investment Process and Portfolio Creation

01.3. 投資ポリシーが以下のどの項目をカバーしているか明示して下さい:

01.4. 組織の投資原則および全体の投資戦略、受託者義務(または同等のもの)の解釈、ならびに、ESGファクターおよび実体経済の影響をどのように考慮に入れているかについて説明してください。

Our philosophy is based on the belief that the coverage of small-cap value stocks by Wall Street's research machine is often inconsistent and/or incomplete.

Our investment strategy (process) exploits these inefficiencies, helping our portfolio management team find small cap stocks that are misunderstood, undervalued, or ignored by major Wall Street firms.

Beginning with a universe of approximately 2000 profitable companies with market capitalizations between $250 million and $3 billion, we apply multi-level tests to identify good businesses based on a variety of factors including financial strength, internal returns, cash flow generation and valuation.  Valuation and financial strength criteria typically eliminate 75% of the names with additional names being eliminated based on our research team's experience and knowledge. We want to buy stocks with a greater than 40% upside / 20% downside ratio. 

Our (bottom up stock picking) investment criteria:

  • Compelling high quality companies
  • Stock trades at a discount
  • Identifiable growth "catalysts"
  • Screen for positive environmental, social, governance (ESG) factors
  • Avoid investments in fossil fuels, firearms, private prisons, and unethical labor or lending practices

Our mandate is to preserve client capital by managing risk while also outperforming our value benchmarks and peer groups over a 5 year market cycle.

01.5. 責任投資アプローチをカバーする組織の投資ポリシーの重要な構成要素、バリエーション、例外事項を簡潔に説明してください。[任意]

01.6. 補足情報 [任意]


SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents


02.1. 一般に入手できる組織の投資ポリシー文書を記載してください。その文書のURLを記入し、該当文書を添付してください。




          Investment Process and Portfolio Creation


02.2. 一般に入手できる組織の投資ポリシー文書を記載してください。その文書のURLを記入し、該当文書を添付してください。



02.3. 補足情報 [任意]

We are a small company with 8 full time employees.  We have 5 research analysts, including 3 portfolio managers (of which two are the owners) that look for investments.  The portfolio managers make the final investment decisions about buying, selling, or adding to a stock position.  The portfolio managers also make the decision about whether to engage with a business.  Engagements are done on a case by case basis as determined by the situation.  The portfolio managers will lead the team when engaging with an organization.  Active ownership and integrating climate change analysis into the stock picking decision is done by all research analysts but the final investment decisions are made by the portfolio managers.  Portfolio managers are aware of the investments being researched through weekly and monthly meetings.  One advantage of being a small investment firm is that the portfolio managers are knowledgeable about each investment during each step along the way.  

SG 03. Conflicts of interest

03.1. 組織として、投資プロセスにおける潜在的な利益相反を管理するポリシーを策定しているかどうかについて明示して下さい。

03.2. 投資プロセスにおける潜在的な利益相反を管理するポリシーについて説明してください。

Neumeier Poma Investment Counsel LLC ("Neumeier") is an investment adviser registered with the United States Securities and Exchange Commission (the "SEC"), under the Investment Advisers Act of 1940 (the "Advisers Act").

Clients invest with us knowing we invest exclusively in small-cap value stocks (portfolio 30-40 holdings).

Neumeier's Compliance Manual sets forth policies and procedures that are reasonably designed to prevent violations of the Advisers Act and SEC rules by Neumeier and its employees as envisioned by SEC rule 206(4)-7(a).

Neumeier enforces a written Code of Ethics to comply with SEC Rule 204A-1. Employees are to comply with applicable federal and state securities laws and regulations.

As a fiduciary to each client, Neumeier owes each client the same duty of loyalty. As a consequence, Neumeier cannot give one client or group of clients' preference over other clients.  Yet it is not always possible to execute all client transactions in the same security or other investments for all clients simultaneously.  Therefore, Neumeier has adopted Transaction Allocation Policies as part of its Client Transaction Policies and Procedures for allocating, in an equitable manner, transactions among its clients participating in a given transaction. Conflicts are generally dealt w/ on a case by case basis.


03.3. 補足情報 [任意]

SG 04. Identifying incidents occurring within portfolios

04.1. 組織では、投資先企業において発生するインシデントの特定と管理を行うプロセスを設定しているかどうか明示して下さい。

04.2. インシデントを管理するプロセスを説明して下さい

Risk management is critical in our objective to maximize alpha and control downside. Incidents (ESG included) that occur within portfolio companies that bring new information lead to a re-evaluation of the original investment premise. Sell discipline is applied on a case by case basis.