Investment Process


Idea Inception

Target with Arrow

Company-Specific Research

File folder icon with slider Indications

Portfolio Management

The North Star Process – Micro to Macro Investing

While our focus is on overlooked small- and micro-cap companies, the North Star Mutual Funds actively invest in undervalued companies of all sizes. When considering an investment, we look for opportunities that meet at least four of the six criteria:


1. Statistically Undervalued

The stock trades at a discount to public comparables, private market multiples, and our internally established expected value calculations.

2. Defendable Business Model

The business has been through at least one business cycle.

3. High-Quality Balance Sheet

A balance sheet to withstand economic cycles with a bias toward no to low leverage.


4. Improving Business Prospects

The business’ mid-term prospects are improving due to specific or general reasons.

5. Advantageous Ownership

Company management has a vested interest in the successes of the shareholders.

6. Simple Business

We can understand and assess the risks inherent in the business model.