The philosophy is centred around ‘relative value’ and exploiting the market’s misperception of company strength. The team looks to buy companies trading at substantial discounts to intrinsic value, typically a result of company or sector related noise, that will typically exhibit structurally high margins and high normalised free cash flow yields. There is a clear focus on valuation, although the team do not use the traditional low statistical (P/B, P/E) starting point to identify companies.
Gary joined SCM in 2005. Prior to joining SCM, Gary was as an Equity Analyst on Prudential Equity Groups’ International Investor team and at Robertson Stephens on the M&A team. In addition, he was a management consultant at Sibson and Company a McKinsey spinoff focused on overall strategy, management incentives and return on invested capital and at the Federal Reserve Board as an analyst focused on Japanese banks. His previous work experience with retail investments typically draws him to focus on consumer and business services related companies. Gary received his M.B.A. from Columbia Business School and a B.A. from Trinity College.
Charles E. Swain, CFA
Charles joined SCM in 2011. Prior to joining SCM, Charles spent nine years at RCM Capital (later Allianz Global Investors); seven years as Head of Industrial Research and five years at Brinson Partners. Prior to that he spent five years at McKinsey and Company as a Senior Engagement Manager. After graduating from MIT, Charles was the 4th employee at Ceramic Process System an MIT start up led by Clayton Christensen. CPS went public after three years and is a leading developer of products and manufacturing processes using high-technology metals and ceramics such as silicon nitride, silicon carbide, and aluminum oxide. Charles was an R&D manager as well as a business development manager. His industrial background typically draws him to focus on materials, energy, industrials, and transports related companies. He received his M.B.A. from the Stanford University Graduate School of Business, an M.S. and B.S. from M.I.T. in Chemical Engineering, and earned his Chartered Financial Analyst designation in 1999.
Scott joined SCM in 2013. Prior to SCM, Scott spent 16 years in a number of investment analytics, consulting and direct management roles. His management consulting experience with Oliver Wyman and ZS Associates covered a wide range of industries with a concentration in Healthcare and Technology. He also co- founded and was the COO of Demand Tech a successful software company that went public. Scott’s previous work experience with investments across multiple industry sectors has typically drawn him to focus on special situations, healthcare, and technology-related companies. He received his M.B. A. from Stanford University and B.A. from Dartmouth College.