Behind the research.
Explore the spine of our strategy.
I. EXPEDITION.
INITIATIVE’s research and investment team begins the journey of identifying the ever-changing forces that are taking place in our world. Our open research infrastructure begins with the nexus of events changing the world, to locating the factual data that affects it. The foundation begins with the inclusion of force field developers who are the leaders in their respective fields, to gathering studies, results & insights as companies, governments, & people respond to the ever-changing forces.
II. TRANSFORMATION.
Following the vast data collected and analyzed, our team begins the quantification process on a multi-year basis utilizing cost-curves, models and simulation analysis of every hypothetical possible. This in turn allows the forces at play to transform into more concrete solutions where demand for that issue is needed. It allows us to understand where & how demand is shifting, the competitive advantage of that demand, and its intrinsic value on a global basis. Through this process, specific companies are identified as they continue up the chain of analysis.
III. VALUATION.
An investment is only as secure as the underlying financial analysis. The targeted companies are prioritized with multi-pass DCF valuations and iron-clad inflation-based metrics in order to make decisions based on conservative realistic projections only. We build out revenue models for the next 5 years for each company taking into account the deviating external forces at play such as the difficulty of volume growth, expense inclines, market adoption, geopolitical forces, third-party product reliability, management & governance, taxes, inflation, etc - that can cause a downside deviation in its ability to grow earnings and cash flows & maintain its competitive advantage in the marketplace.
IV. RISK MANAGEMENT.
INITIATIVE monitors the underlying investment thesis of every company during weekly portfolio and research meetings. Generally, INITIATIVE will trim or add to positions to, among other things: (i) take advantage of opportunities created by short-term negative market actions or market sentiment; (ii) provide liquidity to invest in companies in which INITIATIVE has relatively more confidence; or (iii) fund names that INITIATIVE believes offer relatively more market opportunity relative to current price. INITIATIVE may sell a company if the company is drastically changing, or our investment criteria is no longer supported, or we believe a company is no longer presenting opportunities for further growth.