About InterCapital Management
InterCapital Management is an investment advisory firm located in New Orleans, Louisiana. We implement a concentrated model portfolio to invest in publicly traded companies that present a unique long-term opportunity.
At InterCapital, we believe strongly that in today's disruptive market environment there's an opportunity to generate alpha by employing a disciplined concentrated investment strategy in individual securities rather than index investing. Our model portfolio will typically hold between 10-15 equity securities at any given time. Our team researches equities of any market capitalization that we have confidence will produce high, risk-adjusted, forward rates of return. In today’s ever-changing economy, where market disruption is so prevalent, understanding trends and changes in consumer behavior of the Gen Z and Millennial population is crucial when making investment decisions for the future. Our team is well equipped for this analysis.
When analyzing businesses, we use a “bottom-up” approach focused on individual companies, while also taking into consideration macroeconomic factors and where we stand in the economic cycle. We look for above average businesses trading at below average prices. We believe this approach combines the best features of the so-called “value” and “growth” investing. With a 3 year+ time horizon in mind, we use our “Triple P” model (Product, Price and People), to identify companies that will prosper going forward.
Our team believes that analytical and informational advantages that used to exist for large investment firms no longer exist because of the internet's accessibility effect on knowledge. We look towards human behavioral tendencies in the market and contrarian indicators, alongside our individual company research to reach an investment decision. More can be found on this philosophy by requesting our investment white paper.
For more information, contact us.
InterCapital, LLC.
900 Camp St.. New Orleans, LA 70130
504-610-8109
Triple P Investment Constraint
Price
At InterCapital Management, we strive to identify companies trading at prices that may produce high, risk-adjusted, forward rates of return. When analyzing companies, the returns will be based upon the future cash flow generated.
In today’s algorithmic-based trading environment, moves tend to be more pronounced and exaggerated. While this can be painful in the short run, this creates great opportunities for long-term oriented investors. Our team utilizes these market conditions to remain patient and locate great companies that overreact on the downside.
Markets can be very inefficient in the short-run with headline risk and doom-and-gloom market commentators fueling a sell-off. However, in the long-run market efficiency wins out. This creates opportunities for our firm to implement our "Bottom-Up" approach during times of fear to invest in businesses for the long run. We block out the noise and analyze the underlying fundamentals of a company.
Our team places a strong emphasis on price paid.
People
As long-term investors, we understand that the people running the business will play a critical role in the outlook of the company. With a 5-year time-horizon in mind, management’s ability to allocate capital effectively for the long-run, not quarter-to-quarter is a key determinant when analyzing companies.
We focus on how management allocates cash in the following ways:
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Growing existing business profitably
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Investing in synergistic business in cost effective manners
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Debt pay down
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Repurchasing shares at intriguing prices
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Dividend issuance
Product
Management and Price weigh on our investment decisions, but the ultimate driver of whether the investment is executed is based around a company’s product/service and standing within a certain marketplace.
The market does not reward companies for past performance, so understanding which companies will continue to grow is critical to finding value.
InterCapital seeks businesses that have a certain innate characteristic that makes it a high quality company. Our team looks for market leaders that will significantly outperform their peers during downturns and steadily outperform in up-periods.
Leaders of industry that possess the following characteristics:
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Substantial Market Share
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Limited use of Leverage
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Sustainable Growth (Not a Fad)
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Consistent & Wide Profit Margin
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Increasing Competitive Advantage
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Pricing Power
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Limited Cyclicality
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Strong Cash Returns on Tangible Assets