Since its founding in 1997, Ensemble has remained focused on delivering robust asset management solutions to clients across all channels

Strategy Introduction
The strategy represents a long-only equity offering that invests in competitively-advantaged businesses which can be purchased at compelling prices based on their long-term earnings potential. It is a high-conviction, concentrated, unconstrained strategy with a benchmark agnostic portfolio construction. Central to the security analysis is verifying the existence and sustainability of a company’s moat. These competitive advantages have the most influence on rates of return on invested capital over time. High returns on invested capital, which are far more persistent than high growth rates, result in more distributable cash per dollar of reported earnings.

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Investment Philosophy

Before we invest in any company, we must believe that three factors, Management, Moat, and Forecastability, are present and of equal importance.

Research Process

The research process enables us to learn as much as possible about the industry trends, competitive dynamics, and customer demands that give rise to intrinsically valuable companies.

THE IDEAL TARGET Icon
THE IDEAL TARGET

Strong and sustainable moat
Management focused on returns on invested capital and capital allocation
Operates an understandable and forecastable business

IDEA GENERATION Icon
IDEA GENERATION

Broad and wide reading, not quantitative screens
Investigation of supply chains and peer groups within competitively advantaged industries

COMPANY ASSESSMENT Icon
COMPANY ASSESSMENT

Qualitative analysis with quantitative scoring
How wide is the company’s moat
Persistence of relevance of the company’s products and/or services
How focused is management on maximizing economic value creation
How focused is management on shareholder returns
Predictability of industry change
How well we understand the company and industry

ANALYTICAL INPUTS Icon
ANALYTICAL INPUTS

Company filings and transcripts
Industry news and research sources
Company visits
Wall Street equity research
Moody’s credit research

SCORING Icon
SCORING

Zero to three for each metric
Most public companies score zeros
Zero score on any metric results in elimination
Blended average of individual metrics with global assessment

Portfolio Implementation
Top 5 Holdings
as of March 31, 2024
Weight
Market Cap
Industry
Bookings Holdings, Inc.
7.5%
$124.0 Billion
Online Travel
Mastercard, Inc Class-A
7.2%
$449.3 Billion
Payment Processing
Netflix Inc.
7.1%
$1884.6 Billion
Media
Alphabet, Inc. Class-A
7.0%
$1884.6 Billion
Internet Services
The Home Depot, Inc.
7.0%
$380.2 Billion
Home Improvement
Holdings
Total Number of Holdings 21
Percent in Top Five 35.7%
Percent in Top Ten 61.6%
Median Holding Weight 4.5%
Average Holding Weight 4.7%
Active Share 93.7%
Percent by Market Capitalization
Under $2 Billion 2.3%
$2 Billion to $10 Billion 12.6%
$10 Billion to $20 Billion 3.5%
$20 Billion to $100 Billion 37.2%
$100 Billion and Above 44.1%
Cash 0.4%
The Investment Team
SEAN STANNARD-STOCKTON, CFA<br />
PRESIDENT & CHIEF INVESTMENT OFFICER Profile
SEAN STANNARD-STOCKTON, CFA
PRESIDENT & CHIEF INVESTMENT OFFICER

Sean oversees the investment process, performs research on prospective and current portfolio holdings, and is the Portfolio Manager of the Ensemble Fund. Prior to joining Ensemble Capital, he was a member of the private client advisor team working with high net-worth individuals at Scudder Investments. He holds a BA in Economics from the University of California, Davis and the Chartered Financial Analyst® designation.

ARIF KARIM, CFA<br />
SENIOR INVESTMENT ANALYST Profile
ARIF KARIM, CFA
SENIOR INVESTMENT ANALYST

Arif conducts research on prospective and current portfolio holdings. Prior to joining Ensemble Capital, he was Senior Investment Analyst and Co-Portfolio Manager at Kilimanjaro Capital. Previously he was a Senior Equity Analyst at Pacific Edge Investment Management. He holds a BS in Economics from the Massachusetts Institute of Technology and the Chartered Financial Analyst® designation.

EILEEN SEGALL<br />
SENIOR INVESTMENT ANALYST Profile
EILEEN SEGALL
SENIOR INVESTMENT ANALYST

Eileen is a senior investment analyst at Ensemble Capital. Before joining Ensemble Capital, she was a senior analyst at Bloomberg Intelligence and held various roles prior to that including at Artisan Partners, Tildenrow Partners, Nicusa Capital and Robertson Stephens & Co. Eileen graduated from the Massachusetts Institute of Technology (M.I.T) with a BS in Materials Science and Engineering.

PAUL PERRINO, CFA<br />
DIRECTOR OF PORTFOLIO ANALYSIS Profile
PAUL PERRINO, CFA
DIRECTOR OF PORTFOLIO ANALYSIS

Paul implements the firm’s investment strategy in client accounts, while accounting for client specific customizations. Prior to joining Ensemble Capital, he was a Portfolio Manager at Grubman Wealth Management. He holds a BA in Business Administration from San Francisco State University and the Chartered Financial Analyst® designation.

Please go to ADV & Disclosure Documents for additional information about our Investment Team, including a description of their professional designations.

FEE
Account Size Annual Fee
First $10mm 1.00%
Amounts in excess of $10mm & up to $25mm 0.80%
Amounts in excess of $25mm & up to $100mm 0.60%
Amounts in excess of $100mm 0.50%

Questions about our institutional investments?

Mike Navone
Wealth Manager & Shareholder

Email: mike@ensemblecapital.com
Telephone: 650.600.9849

Website: www.ensemblecapital.com
Blog: www.intrinsicinvesting.com
Twitter: @IntrinsicInv

Ensemble Capital Management, LLC
555 Mission St, Suite 3325
San Francisco, California 94105

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