Core Insights - The article emphasizes the importance of generating alpha through independent investment strategies, focusing on a generalist approach across various sectors with potential alpha compared to the S&P 500 [1] Group 1: Investment Strategy - The investment strategy involves managing a family portfolio primarily through a Self Managed Super Fund, with a typical holding period ranging from a few quarters to multiple years [1] - The approach includes building comprehensive spreadsheets that track historical financial data, key metrics, guidance trends, and performance indicators [1] Group 2: Research Methodology - The research methodology prioritizes assessing a company's historical performance and outlook on five key drivers of DCF valuation: revenues, costs and margins, cash flow conversion, capex and investments, and interest rates [1] - The analyst rarely builds DCF models projecting financials far into the future, believing that historical performance and current outlook provide more valuable insights [1] Group 3: Monitoring and Analysis - Continuous monitoring of industry news, reports, and other analysts' coverage is a critical part of the research process, especially during significant events like CEO changes [1] - The analysis includes evaluating the background and past performance of key leaders within the company to understand potential impacts on future performance [1]
Ares Capital's High Yield Looks Safe But The Stock May Still Underperform In 2026