Credo Capital Management’s investment professionals believe in the following tenets that comprise the equity investment philosophy of the firm. Short-term trading tactics, short sales, margin transactions, and option writing are not utilized.

Investment Philosophy

Think forward to identify and exploit inefficiently priced securities

The greatest opportunity to outperform consistently, over time, is to identify and exploit inefficiently priced securities. We believe the greatest opportunity to outperform consistently is to focus on finding inefficiently priced stocks, to be patient, and to be completely flexible as to where we may find the greatest inefficiencies.

Exercise discipline over emotion

The greatest opportunities to exploit market inefficiencies arise from the patterns of irrationality and inconsistency of human decision-making. We believe the U.S. equity markets have become reasonably efficient in the sense that few sources of inefficiency remain. The one major source of inefficiency that remains, and we believe is likely to remain, is the set of patterns of irrationality and inconsistency of human decision-making. Because we believe human decision-making is naturally flawed, and in many ways systematically so, we believe the quality and repeatability of investment decision-making can be substantially improved through the consistent execution of disciplined processes.

Assimilate information versus process data

Data is a commodity and therefore simple processing power no longer provides a sustainable competitive advantage. We believe sustainable advantages derive only from the successful “assimilation” of information into useful investment insights. One important aspect of the assimilation process is consideration of ideas from multiple different perspectives (e.g. quantitative methods and fundamental research). By viewing ideas from many different angles we gain an incrementally clearer picture of the underlying reality.