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  • Founded in 1995, Olstein Capital Management follows an accounting-driven, value-oriented investing philosophy based on the premise that the price of a common stock may not reflect the true value of a company’s underlying business.
  • Olstein’s investment team employs analytical and valuation methods pioneered by Robert Olstein as co-founder and publisher of the Quality of Earnings Report.  Valuations are based on free cash flow. Reliable valuations require a thorough understanding of a company’s accounting practices and an assessment of a company’s Quality of Earnings.
  • Olstein’s investment team reads for heat through an intensive, forensic analysis of a company’s financial statements, accompanying footnotes, shareholder reports and other required disclosures to assess the quality of earnings. Looking behind the numbers to identify positive or negative factors affecting future free cash flow is the foundation of the Olstein's value proposition.
  • There is a strong correlation between above-average investment performance and error avoidance. To achieve long-term success, an investor must first consider downside risk before considering the potential for appreciation.
  • A company’s stock price often falls below its private market value due to temporary problems such as missed earnings estimates, over-reaction to short-term results or overall negative market psychology. These short-term deviations may present viable opportunities for the patient, long-term investor.
  • Excess cash flow is the lifeblood of a business and is the primary determinant of a company's private market value. Companies that generate excess cash flow have the potential to enhance shareholder by increasing dividend payments, repurchasing company shares, reducing outstanding debt, engaging in strategic acquisitions, or withstanding economic downturns without adopting harmful short-term strategies.
  • Forensic analysis of financial statements reveals the Quality of a company’s Earnings, the success of its strategy, sustainability of its performance and impact of management decisions on future cash flow. Forensic analysis of financial statements is more useful to an investor than management forecasts or earnings guidance.
  • Emphasizes investments in undervalued equity securities of companies with discernible financial strength, unique business fundamentals, competitive edge and ability to generate free cash flow
  • Analysis focuses on how a company’s operations generate sustainable free cash flow; how much of that cash is available to investors and the level of ongoing investment required to maintain and grow free cash flow
  • Reliable valuations require determining if a company’s accounting policies reflect business reality (assessing a company’s Quality of Earnings); accounting adjustments to reported numbers to eliminate management bias, and identifying positive or negative factors that may affect future free cash flow