There are more than 3,000 publicly traded U.S. and international companies with market capitalizations between $75 million and $4 billion. These companies are typically under-followed, with little institutional interest or investment research. This imbalance provides opportunities to invest in superior companies at a discount to their intrinsic value as well as to the value of their larger counterparts. Carmel Capital Management L.L.C. seeks these “undervalued” stocks. In fact, the more undervalued, the better – for two reasons. First, when price is lower than intrinsic value, profit potential exists. Second, the gap between price and value provides a margin of safety. The greater the margin, the more it protects your investment during market volatility.

Our value approach to equity selection is a conservative strategy that requires an investor with patience. When a stock is selling at a price well below its worth, we buy it. In time, the market will recognize this value and the price will rise. When this happens, we sell. The process may take place over as long as a typical three to five year market cycle. We buy only our most compelling investment ideas and do not try to duplicate or closet-index the market. Portfolios typically contain 25 – 35 issues giving substantial diversification combined with meaningful exposure to CCM’s best investment ideas.