The general partner of Walton Capital Management has maintained a consistent and disciplined adherence to a proven investment philosophy for over two decades. We believe that the cornerstone of any investment is the senior management team. We seek to invest in outstanding companies that have relatively simple, straightforward businesses and established track records. We typically seek companies with enterprise values between $30 million and $150 million. Additionally, there are fundamental characteristics that we seek in each investment opportunity and another set of characteristics that we avoid.
The attributes we seek are:
- Solid entrepreneurial senior management
- Strong likelihood for predictable real growth
- Value-added products or services
- High operating margins with strong cash flow attributes
- Leading market share in a defensible niche, or a strong market position with substantial acquisition opportunities in a fragmented industry
The attributes we avoid are:
- Excessive sensitivity to recessionary or commodity business cycles
- High risk of technological obsolescence
- Highly regulated industries
- Extreme capital intensity
- Aggressive foreign competition
INVESTMENT STRATEGY