Capital Management Process & Philosophy
Successful investing doesn’t happen in the short term. By putting emotions aside and diversifying to help manage risk, we seek to participate in market appreciation while preserving capital during challenging markets.
Good knowledge never stops growing.
Park Place Capital Management seeks to generate competitive, absolute and relative risk-adjusted returns over the full market cycle. This is done through a bottom-up focused, top-down aware investment process.
- Assess the impact of economic and industry themes
- Research potential downside exposure of each security
- Evaluate optimum risk/reward balance for each portfolio
- Minimize unintended style biases and sector concentrations
Park Place Capital Management’s decision-making process is a collaborative effort, focusing on bottom-up stock selection. Together, members of the team are responsible for stock selection through quantitative analysis, portfolio construction, and risk management relative to the benchmark.
We use our skills to identify key quantitative drivers for each company and industry, determine the timing and appropriateness of each key driver, assess investor sentiment, and identify companies with the most underestimated earnings drivers.
The Buy Discipline:
- Identify company specific Key Metrics likely to cause investor expectations to be exceeded
- Bottom-up stock selection within each sector
- Weight positions based on expected return and volatility
The Sell Discipline:
- Sell stocks that violate Key Metrics
- Sell stocks for better opportunities
- Trim positions when the risk/return trade-off increases
Process driven by internal credit analysis
Focus on cash flows to portfolio
Relative value spread analysis
Potential downside scenario valuations
Historical credit spread analysis
Cross-reference peer group analysis
Holding reaches full valuation
Anticipation of deteriorating credit fundamentals
Client driven liquidity event
Unexpected developments, including significant management changes
2728 19th Place South, Ste 160
Birmingham, AL 35203
1820 West End Ave, 2nd Floor
Nashville, TN 37203
82A Clark Blvd
Tupelo, MS 38804