Stone Run Capital’s investment philosophy focuses on investing in quality companies at a reasonable valuation. We believe the best strategy to create and sustain long-term wealth is to:

  • Protect client capital in down markets
  • Provide competitive risk-adjusted returns throughout an investment cycle, which we measure as five to seven years

We measure quality through an assessment of:

  • Leading quantitative financial metrics such as return on invested capital, free cash flow generation, and persistent and predictable growth
  • Leading niche market position(s) and pricing power
  • Proven senior leadership

We assess valuation using a combination of:

  • Total enterprise value metrics relative to operating profit, operating profit before depreciation and amortization, net income, and free cash flow
  • Economic value added (EVA) generation
  • Analysis of incremental change in growth and profit