The best way to manage risk? Respect it.

The best way to manage risk? Respect it.

The focal point of Cerner Capital Management’s philosophy is risk; we focus our efforts on generating absolute returns at a given level of risk. We respect the linear relationship between rising prices and market risk, and we’re not afraid to hold onto cash when conditions warrant.

Our strategy

We pursue long-term, risk-adjusted equity returns by investing in companies that achieve superior cash flows on invested capital. We then examine the fundamental relationships of their cash flows, dividends, invested capital and price. We select companies only if they meet all of our quantitative screening metrics, which determine if we buy, sell or hold. Lastly, we purchase stocks only when they are trading at less than their intrinsic value, and sell them when they’re fully valued or to manage risk.

We view dividends as an important indicator of management’s ability to manage excess cash, as well as its confidence and discipline to continue to generate excess cash

Cerner Capital Management manages risk by respecting it.