Investment Process

Portfolio Construction

Step 1: Quantitative Analysis

Our process begins with Tandem’s proprietary ratio — a multi-factor model which is applied to a universe of 3000+ stocks. The ratio helps identify companies that meet our fundamental requirements — those companies with consistent earnings growth and sales growth that are trading at a good valuation.

Step 2: Semi-Quantitative Review

Tandem performs fundamental research of the companies identified in step one. This includes reading company filings and listening to company conference calls. The team eliminates companies from investment consideration for various reasons. While there are several reasons for exclusion, three examples include 1) a dividend cut, 2) inconsistent or lack of growth in cash flow, or 3) the hiring of a CEO from outside of the company. Stocks ‘ranked to buy’ proceed to the next stage.

Step 3: Human Intervention

Stocks that have passed through fundamental analysis and are ‘ranked to buy’ make it to this stage. The investment team analyzes the business for sustainability, assesses business risk, and reviews all of their prior research on the stock. Stocks that pass this step move on to the final stage.

Step 4: Technical Analysis

The team identifies entry and exit points based on a stock’s price history (looking at moving averages, support and resistance). Price action determines key entry and exit points.

Sell Discipline

Tandem’s sell discipline is prescribed by methodology and is not subject to sentiment, emotion or interpretation.

Fundamental Sale

  • A stock violating our fundamental requirements must be liquidated.

Valuation Sale

  • A stock meeting our fundamental criteria but considered overvalued will have a portion of the holding sold.

Significant Price Movement

  • A stock experiencing significant relative price appreciation will have a portion of the position sold.
  • A stock experiencing significant relative underperformance is reviewed.


The investment objectives, risks, charges and expenses of Castle mutual funds must be considered carefully before investing. The prospectus for each Fund contains this and other important information about the investment company, and it may be obtained by calling 1-877-743-7820, or visiting Read it carefully before investing.

Distributed by Arbor Court Capital, LLC – Member FINRA / SIPC.