Equity Portfolio

Bridgeport favours taking ownership stakes in public companies that:

  • Generate high levels of operating cash flow relative to their market valuation.
  • Generate significant recurring revenue (i.e. repeat customer business).
  • Exhibit high barriers to entry through:
    • Dominant market positions
    • Branded products/services
    • Long term customer contracts
    • Significant economies of scale
  • Achieve consistently high profit margins and rates of return on capital employed in their business.
  • Are conservatively capitalised.
  • Employ skilled and experienced management who are effective allocators of capital.
  • Are not susceptible to rapid technological change.
Our valuation methodology focuses on the value of a public company in its entirety using earnings and fundamental valuation metrics such as:

  • Enterprise Value / EBIT
  • Enterprise Value / EBITDA
  • Enterprise Value / Free Cash Flow
  • Price / Earnings
  • Price / Adjusted Book Value