Portfolio management expertise.  Customized solutions.

Chapel Street Advisors LLC

To contact us:

Phone: (860) 873-8115

E-mail: info@chapelstreetadvisors.com

Investment Style

Chapel Street’s managed equity investment philosophy is long-term-value-oriented:

 

► Invest for the long term in companies having favorable prospects for earnings and cash flow growth not believed to be fully reflected in their share prices; and

 

► Base investment decisions/recommendations on sound fundamental analyses centered around a Shareholder Value Approach to industry, company and security selection -- where Free Cash Flow analysis serves as the cornerstone of security valuation.

 

Investment Philosophy
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Fair Value Price Arbitrage™

Fair Value Price Arbitrage™ is the proprietary, disciplined, multi-staged approach to stock selection employed by the Firm across its managed equity Product Offering. 

 

For example, in constructing Chapel Street LTV — the model portfolio at the heart of the Chapel Street Long Term Value Program, the Firm’s flagship managed account program — Chapel Street applies Fair Value Price Arbitrage™ as follows:

 

► Step 1: Sophisticated Database Screening— From a universe of almost 9,000 publicly-traded domestic stocks, the Firm first narrows the field of potential target securities to approximately 2,600 using sophisticated database screening techniques.  First level screening criteria include: minimum sales; minimum market capitalization; and preferred industry sectors.

 

► Step 2: Proprietary Screening Criteria —Chapel Street applies a set of second level screening criteria in order to narrow the field of potential target securities even further (from approximately 2,600 to 100-400).  Second level screening criteria include: sales growth rate; EBITDA margin; FCF/share; P/E ratio; A/R and inventory days and insider shareholdings and activity.

 

► Step 3: Proprietary Evaluative Analyses —Finally, the Firm performs proprietary evaluative analyses in order to identify a target portfolio of 8-30 companies having favorable prospects for earnings and cash flow growth not believed to be fully reflected in their share prices.  Once again, with Free Cash Flow analysis at the core, investment decisions/recommendations are based on sound fundamental analyses centered around a Shareholder Value Approach to industry, company and security selection.