Scott Value Investing

Scott Value Investing

Scott Value Investing manages long-only equity portfolios for institutions and high-net-worth individuals, concentrated in 15 to 25 names where the investment team believes the market has mispriced durable cash flows. The firm traces its intellectual lineage to Benjamin Graham through its managing partner's training and published writing on value-investing discipline. The strategy centers on North American publicly traded companies with market capitalizations above $2 billion, screened for free-cash-flow yield and balance-sheet strength before undergoing a full-cycle stress test. The portfolio is sector-agnostic above the individual security level, but historical concentrations have included financial services, industrial technology, media and enterprise software. The firm runs one core strategy — U.S. Large Cap Value — through separate accounts rather than commingled funds. Position sizing usually begins at 4% to 7% at cost and is trimmed on price discipline rather than calendar mandates, with average holding periods of three to five years. Geographic focus is the United States and Canada, with no direct exposure to emerging markets or unlisted securities. Michael Scott, the managing partner and chief investment officer, makes all final portfolio decisions. The firm operates without a separate research-analyst layer; Scott conducts the fundamental work — reading 10-Ks, building reverse-discounted-cash-flow models, and interviewing management teams directly. As of mid-2024, Scott Value Investing had not disclosed total assets under management or the number of client relationships, maintaining the tight informational posture common among concentrated, founder-led equity boutiques. The firm has no known adjacent vehicles, philanthropic entities, or co-investment clubs. The firm's structural distinction is its refusal to diversify across strategies, geographies, or asset classes — a pure-play, single-decision-maker structure that is increasingly rare in institutional equity management. This eliminates the committee-risk problem that dilutes conviction in most large asset-gathering organizations, but it also keys performance entirely to one investor's analytical process and emotional discipline over a full market cycle.