Bird Rock Asset Management is an independent advisory firm that offers a small cap value portfolio for institutional investors.

We believe that to be truly successful long term investors you must have a consistent and definable investment philosophy and process as well as a disciplined risk management strategy.  We combine a relative value focus with proprietary quantitative investment techniques to select out-of-favor companies with what the firm sees as attractive risk-adjusted return characteristics. 

The process begins with looking for pricing inefficiencies in smaller capitalization and out-of-favor securities, and securities with little or no formal Wall Street analyst coverage. Over 5,000 stocks with market capitalizations between $100 million and $2 billion are screened using quantitative metrics including cash flow, price/sales, relative price/earnings, and debt to capital. 

After vigorous quantitative analysis on the company itself, we turn our focus to its position within the industry, and the industry as a whole, allowing us to capture alpha on multiple dimensions. There will be between 35 and 50 stocks in the portfolio at any given time. 

When a security needs to be sold, we have a strict, process oriented sell discipline, which removes emotion from the equation. A security will be liquidated or trimmed if:

1. It fails to retain a strong ranking based on the model

2. The position becomes too large in the portfolio – most positions are trimmed upon reaching 5%

3. The stock has deteriorating relative strength and losses are beginning to accrue

In addition, we use a portfolio management team, rather than a single individual, to make all the investment decisions. Although we have had no manager turnover in the past, we want to mitigate the risk that the loss of a portfolio manager would negatively affect the portfolio. 

With the wide array of investment firms available, choosing the manager who best fits your needs can be daunting. Feel free to contact us for more information on Bird Rock and how we differ from other firms by emailing us at , or calling (512) 236-0071.