Our Investment Philosophy

Monarch Partners’ Investment Philosophy is based on Value Discipline, Focused Internal Research and Risk Aversion.

• We identify undervalued companies that possess catalysts that will enhance shareholder value.
• Our research is performed by a dedicated, experienced research team. Our bottom up process is 90% fundamental and 10% quantitative.
• Risk aversion includes diversification, daily monitoring of portfolio exposures, and a strict sell discipline.

Just as important, Monarch Partners has a committed sell discipline. We sell stocks when:

• Full value appreciation to target price
• Business Fundamentals deteriorate
• Identified Catalysts reverse

As mentioned above, Risk Aversion is a main tenet of our Investment Philosophy. Risk Aversion to Monarch Partners means:

• Diversification (60-150 stocks, depending upon the strategy)
• Maximum position size of less than 10% of the outstanding shares of a portfolio company
• Sector weightings at +/- 10 percentage points of the respective Russell Index
• Example - If consumer Discretionary is 12% of the index, Monarch can allocate between 2% & 22%