The methodology of investing at Bokeh Capital Partners LLC is Growth At a Reasonable Price (“GARP”). This principle defines our evaluation and selection of companies for investment.
GROWTH AT A REASONABLE PRICE
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The “G” in GARP stands for Growth. It is the most important metric for investors, regardless of investment style. All investors attempt to discover undervalued companies that will grow into a better valuation than reflected in the current stock price.
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The “RP” in GARP stands for Reasonable Price, but an investment should not be driven solely by price. Bokeh’s implementation of GARP determines that we will not make an investment unless we have identified one or more drivers for growth. These drivers are revenue or margins or both. A strong balance sheet is critical, but not sufficient to drive an investment on its own. We require clear understanding of where and how growth is likely to occur in a company.
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The Bokeh GARP strategy allows us to combine our understanding of how companies and technology work together to create greater productivity, resulting in increased efficiencies and probable profitability. We seek companies whose intrinsic value, created by their utilization of technology, is not yet reflected in the current stock price.
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While most investors love technology, especially for the optics, but we focus on technology that adds value through increased productivity.