The Dispatch

Manager Spotlight

Eagle Ridge Investment Management

A Patient, Focused Belief in Ownership Benefits

Use a consistent process seeking to compound investor wealth over time while taking less risk than the broader markets.

Founded in 2008 by David Tillson and John Knox, the vision of Eagle Ridge was to create an investor-focused firm that based its investments on independent research and process-driven management.

The Eagle Ridge approach was founded on four core tenets:

1. Ownership – Common stocks represent an ownership interest in a business that is intended to be held for years, not quarters. It’s important to have a high degree of confidence in what a business will earn through a “normal” cycle. Eagle Ridge thinks like owners and is highly biased toward quality and competitive advantages.
2. Fundamental Research – The firm believes in knowing each position as though it owned the entire company. Rigorous analysis of each investment and asking “What do we see that others do not?” are both keys to uncovering businesses trading at discounts to their true worth.
3. Common Sense and Patience – Eagle Ridge operates within a historical context and avoids fad investments. Markets can be efficient but often become overly optimistic or pessimistic in the short run. Many investors have shorter time horizons or attempt to time the market, whereas Eagle Ridge believes superior returns come from allowing an investment to mature and compound over time.
4. Risk – The firm believes that risk is the permanent loss of capital, not volatility or temporary fluctuations in price. With that in mind, an important part of its job is to protect investors during these times by maintaining a strategic focus on the long term. Each investment is managed with an eye toward a margin of safety in terms of Eagle Ridge’s estimate of what a company is worth.

To achieve its goal of generating long-term returns with a lower risk profile relative to the respective benchmark, the firm carefully analyzes the results of its proprietary research to create a concentrated portfolio diverging from the benchmark. It generally focuses on companies with a high cashflow-to-market value ratio, high asset-to-debt ratio, profitability, and growth potential.

Eagle Ridge manages two portfolios on the EQIS platform:

• Eagle Ridge Small Cap Quality Core
• Eagle Ridge Global Quality

If you would like to deploy these strategies, go to the respective client contact and from the Action drop-down menu in the upper right corner, select Change Asset Allocation.

This option is only available for clients who have provided you with trading authorization. If you do not have trading authorization, you can either submit a Limited Power of Attorney signed by the client or use the Client Directed Asset Allocation Form found on the Resources Tab and have the client sign it.

Your EQIS Business Consultant is available to help you implement these changes, or contact Advisor Services at support@EQIS.com or 800-949-9936 and press 2.

The information is believed to be reliable but is not guaranteed by EQIS. EQIS and Eagle Ridge Investment Management are not affiliated. This is not an offer to buy or sell securities.

In This Issue:

• State of the Markets   |   Late Rally for Stocks, Cryptos Plunge
• Manager Spotlight   |   Eagle Ridge Investment Management
• Best Practices   |   Three Keys to an Effective Introductory Conversation

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