Contact

The Team

Our Approach
Fund Manager

W.H. Reaves & Company, Inc. (dba Reaves Asset Management) - Investment Management

  • An investment advisor specializing in utilities and energy infrastructure, founded in 1961
  • Approximately $3.1 billion in total assets under management (as of 9/30/18)
  • 40-year track record for institutional clients
  • Portfolio managers are supported by a highly experienced management team
  • Research team averages over 20 years of industry experience
Philosophy

Reaves Asset Management believes that an information advantage can be created when experienced analysts focus their fundamental, quantitative and qualitative, bottom-up research within the utility sector. Furthermore, the identification of utility companies that are disciplined enough to supply growing dividend income to their shareholders is a key component in the management process.

Investment Process
Qualitative Process

Management Interviews

  • Gauge competence, track record, and alignment with shareholders' interests
  • Assess viability of management strategy and judge likelihood of meeting goals
  • Assess robustness of corporate governance

Field Research

  • Extract nuance through conversations with competitors, customers, and suppliers
  • Conduct industry research such as contact with regulators and performing supply chain analysis

Macro Factor Analysis

  • Evaluate industry prospects
  • Assess factor biases such as interest rates or commodity prices
  • Evaluate regulatory climate
Quantitative Process

Modeling and Analysis

  • Carefully model business drivers and financial statements to assess business viability, company robustness under differing business scenarios, and the level of realism imbedded in street expectations
  • Independent and original earnings projections made
  • Assess potential changes in cash, dividend and earnings generation capability

Valuation

  • Utilize historical P/E, EV/EBITDA, P/B and P/CF
  • Utilize historical absolute and relative dividend yield analysis
  • Assess M&A attractiveness through NAV calculation

Technicals

  • Assess shareholder base, short interest and liquidity

Internal Review by Team Conducted Weekly

Investment Philosophy
  • Portfolio managers dynamically evaluate research analysts' recommendations and determine priority and attractiveness in accordance with investment guidelines
  • Risk management reviews conducted before investments are made
  • Timing of entry and exit is assessed by mapping out catalysts, assessing market conditions and conducting technical analysis
  • Investments continuously re-evaluated and conviction level checked
  • Investments liquidated when objectives are reached, a change in our fundamental outlook has occurred or when relatively better investment opportunities arise