Key elements of our invesrtment policy include our long-term approach to investing (3-5 years) coupled with our disciplined, fundamental, bottom-up valuation-based process to select companies that are inefficiently priced relative to their earnings growth outlook and the integration of ESG research.
Fairpointe defines ESG as the integration of Environmental, Social and Corporate Governance factors into our investment analysis of portfolio companies. We assess the materiality of various ESG concerns that may impact a company’s financial outlook as well as its reputation. We utilize third party rating service to aid our research, but ultimately determine our own ESG rankings of each company
Fairpointe Capital takes our corporate ESG efforts seriously. In addition to the investment actions that are provided above, we have a committee to look at means to improve our firm’s performance.
Fairpointe Capital works to reduce the firm’s environmental impacts. Efforts include: paper and plastic recycling, battery and toner recycling, encouraging employee use of public transit through pre‐tax qualified transportation benefits, discouraging the use of disposable dishes, use of conference calls instead of travel when possible, indoor plants to help clean and cool the air, and provision of filtered water instead of bottled.
Fairpointe Capital is a majority woman‐owned firm that offers excellent working conditions,employee compensation and benefits. In addition to corporate charitable donations, the firm offers matching donations so that employees can donate to their charities of choice. The firm supports volunteerism and Rock the Street, Wall Street, a financial literacy program for girls.
Fairpointe has an extensive privacy and data security policy. Audits by an outside firm are performed annually and have eight years of unqualified opinions. In addition, we believe our investment in companies and voting of proxies gives us a voice to improve corporate behavior.
We believe that both our internal and community actions should reflect the values that we require for companies we hold in our portfolio.