Research
We believe that active, internal research is the most effective method for discovering values that are not broadly recognized within the investment community. Glickenhaus & Co. is a "research house," with the majority of research performed by our staff.

An investment idea may originate with any member of our professional staff. Once sufficient research has been performed to recognize any potential merit in the stock, the company is discussed at our regular group meeting. This serves to identify areas which must be fully documented before we will begin to purchase the stock in our portfolios. This process results in an estimate of the upside potential and downside risk for each security.

Visits with managements of companies in which we are interested are crucial to our research effort. Although we use outside research from major brokerage firms, it is used for information purposes only, not for buy and sell recommendations. The portfolio managers/analysts conduct an intensive due diligence on each company which includes:

• accounting validation of the company's financial statements to determine how "real" the assets and cash flows are, the capital structure of the corporation, trends in sales, earnings, margins and debt, any hidden assets or liabilities that might exist; and other issues that may arise on a case-by-case basis;
• traditional securities analysis which involves, among other things, speaking with company management and analyzing the company’s different products in terms of trends in volume pricing, costs and market share.

When the portfolio managers identify a company that appears interesting, they develop projections for earnings, cash flow, dividends and other fundamental measures based on internal research and selected Wall Street sources. A major element of the analytical process is an evaluation of the risks which might prevent the company from achieving its estimated price target.