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Our Firm / Investment Research Team

Applied Finance, a thought leader in valuation and portfolio construction, is a true “value” investment management company.  Unlike the majority of firms today that focus on low multiples to define “value”, we define value as identifying companies trading below their intrinsic value.  Our Valuation Driven™ approach forms the foundation of our investment decisions.

Applied Finance is 100% employee owned, with the average tenure of our 10 partners being over 18 years.

History of Innovation

Research has always been a critical part of Applied Finance’s culture.  In 1995, we humbly began in a Chicago basement, with the idea to create a better approach to measure corporate performance and value companies than existed at the time.

Our roots were and remain dedicated to answering two questions critical to any investment decision:

  • What is a firm’s economic performance?
  • What is a firm worth?

We developed the Economic Margin® framework to measure a firm’s economic, rather than as-reported accounting performance, leading the industry with primary research into:

  • Capitalizing R&D
  • Estimating size and leverage risk premium
  • Modeling competitive advantage through Economic Profit Horizon™

Ultimately, creating a direct link from corporate performance to valuation.

Shortly thereafter, we began assembling a technical team that today includes a unique mix of professionals with diverse functional, educational and cultural backgrounds.  The result is a special workplace that values: accomplishment, stability, and ethics in the pursuit of excellence for our clients.

Since 1995, we have calculated over 20 million out of sample, point-in-time, company valuations.  Each week we add approximately 20,000 additional intrinsic value estimates to continually expand our knowledge and improve our strategies.

Our proprietary research analytics provide the foundation for our repeatable and sustainable investment process.

Applied Finance Facts:

  • 100% employee owned.
  • Average tenure of our 10 partners is 18 years.
  • Total assets managed through all affiliated entities is approximately 1 billion.
  • Investment strategies available across Large Cap Stocks and Small Cap Value.
  • Investment vehicles available include Separately Managed Accounts and Mutual Funds.