Capital Management Process & Philosophy

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

Our Investment Process

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.

Quantitative Analysis

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.

Portfolio Construction

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
Fixed Income Management
Credit

Process driven by internal credit analysis
Focus on cash flows to portfolio
Management assessment
Proactive monitoring

Valuation

Relative value spread analysis
Potential downside scenario valuations
Historical credit spread analysis
Cross-reference peer group analysis

Sell Discipline

Holding reaches full valuation
Anticipation of deteriorating credit fundamentals
Client driven liquidity event
Unexpected developments, including significant management changes

2001 Park Place, Ste 525
Birmingham, AL 35203

2506 Winford Ave.
Nashville, TN 37211

82A Clark Blvd.
Tupelo, MS 38804