In this session we will explore the concept of Quality Compounders— companies with 1) high returns, 2) stable returns, and 3) little-to-no debt—and what drives them. We have discovered their long-term compounding potential is primarily tied to A) the strength of their business model (its Club-Glue-Platform characteristics, in our lexicon), B) their management team’s ability to reinvest future cash flows attractively, and C) the margin of safety embedded in their valuation and leverage. Quality Compounders are companies to whom we feel comfortable entrusting capital, confident that they can do extraordinary things with it, with no need for micro-managing by us.
We will spend our time evaluating the business models of companies that fit in this exclusive category via a proprietary framework “Club, Glue, Platform (CGP)” developed by the Rondure Global Research Team.. We will define the framework and quantify the CGP strength of several companies via case studies, ending with the ability to identify as a group, great Club, Glue, Platform business that are often found to be Quality Compounders.
Laura Geritz, CFA FOUNDER, CEO & PORTFOLIO MANAGER
Ms. Geritz is the CEO and Founder of Rondure Global Advisors, a woman- owned investment firm focused on high quality "Core" equity investing with a long-term view. Rondure's strategies include a developing countries portfolio and an overseas developed country portfolio. Ms. Geritz is the Portfolio Manager for both strategies.
Prior to founding Rondure Global Advisors in 2016, Ms. Geritz spent ten years on the international team at Wasatch Advisors where she was the founding Portfolio Manager for the Wasatch Frontier Emerging Small Countries Fund (WAFMX) from its inception in 2012 – 2016, a lead Portfolio Manager for the Wasatch International Opportunities Fund (WAIOX) from 2011 – 2016, and a lead Portfolio Manager for the Wasatch Emerging Markets Small Cap Fund (WAEMX) from 2009 - 2015.
Ms. Geritz began her financial career in 1997 at American Century Investments as a bilingual investor relations representative. She moved to the investment team in 1999 where she worked as a US Mid/Large Core and Global analyst. In 2004 she joined Mellon Corporation as a senior analyst working on US small- and micro-cap funds.
Ms. Geritz graduated with honors from the University of Kansas, earning a BA in Political Science and History. Later, she earned a Master's degree in East Asian Languages and Culture from the University of Kansas. Ms. Geritz is a CFA charter holder.
Laura has lived in Japan and speaks Japanese. She is an avid reader.