Our Approach and Process

Echo Street’s investment approach is predicated on our foundational belief that, over time, the price of a stock will track its growth in NAV.  NAV is comprised of two components: a parameter describing earnings growth and a parameter describing quality.

Our investment process centers on covering durable companies that consistently grow NAV.  We refer to most of these companies as GoodCo’s™ and have spent over a decade building out this coverage universe.  The majority of our analysts’ workflow is focused on underwriting the NAVs of these companies as well as discovering new GoodCo’s™.

Our workflow is consistent and rigorous, and we pursue knowledge that builds on itself, year after year.


Echo Street’s long-only equity strategy seeks to own the most privileged GoodCo’s™ from our coverage universe.  Privileged GoodCo’s combine durability with strong earnings growth and we believe these companies represent the market’s most attractive compounders.

The strategy incorporates a long-term investment horizon and portfolio turnover is intended to be low.


The objective of Echo Street’s market neutral strategy is to generate attractive, uncorrelated returns by monetizing relative price/NAV distortions.  Net exposure is minimal and the majority of idea generation is systematic.