Invesment Philosophy

Fundamentals-Based Research Style Emphasizes Value and Special Situations

For over three and a half decades, E. Magnus Oppenheim & Co., Inc. has specialized in institutional investment research – concentrating on fundamental, in-depth analysis of securities in search of investment opportunities for capital appreciation.

Investment conditions sought are:

  1. Dynamic changes in a company that will positively benefit profits and dividends, such as strategic restructuring, acquisition or break-up (i.e. spin-off)
  2. A stock whose market price severely undervalues company assets, recognition of which will eventually trigger a higher stock price
  3. A well established company that our research, analysis and valuation determines to be out of favor due to non-company specific factors.

Our investment decisions are based on fundamentals, so we aggressively pursue the search for undervalued situations when stock prices are depressed. Since the investments we select are usually in situations whose dynamics may evolve over a one-, two- or three-year duration, long-term capital appreciation is the norm. However, should our price target be reached sooner, we may opt to take profits and realize short-term capital gains.

Our research efforts are usually, but not exclusively, concentrated on larger companies (NYSE and NASDAQ-listed) with broad stock capitalization and sufficient industry and corporate information readily available for thorough analysis.

Conservation of capital is a basic tenet of the E. Magnus Oppenheim & Co., Inc.’s investment philosophy and stock selection process. We therefore do not engage in risky strategies such as trading, short-selling, buying on margin, or speculating in derivatives. Our portfolio management approach utilizes diversification to help control the risk that is always present in stock market investments. In addition, to maximize total investment return, some dividend yield is sought whenever possible.