Discovery Research

Sterling Johnston’s research process is the cornerstone of our investment strategy. The research process is an extensive due diligence course of action, including analysis of company financials, careful evaluation of broker-generated research, and numerous meetings with company management.

Sterling’s internal research process accounts for approximately 60% of the information reviewed on a given company. The research responsibilities of the portfolio managers are divided according to economic sectors as follows; Marc Patten having primary responsibility for the biotech, health care, and technology (software), Tim Chatard spearheading research in capital goods, financials and energy, and Kurt Kroger investigating stocks in the consumer, technology (hardware) and transportation sectors.

Externally, Sterling’s research process includes ongoing communication with regional brokers, analysts, and investment bankers that provide the investment team with insight into under-followed companies. The firm believes that regional investment professionals in close contact with local entrepreneurs are particularly adept at helping to identify new and exciting growth opportunities. The firm has developed and cultivated a vast network of regional analysts, brokers, and investment bankers for the past 30 years. This network, which essentially acts as an extension of the firm’s research staff, is well-acquainted with Sterling Johnston’s investment criteria and is motivated to foster research ideas.

As a result, the Sterling Johnston investment team performs over 700 meetings with company management teams per year, whether in our offices, at industry conferences, or on-site at the company’s location.