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The Eagle Small/Mid Cap Core team identifies investment opportunities based on the following criteria:
Companies with a unique competitive advantage
- Better use of technology
- Excellent management
- High barriers to entry
- Low-cost producer
- Industry consolidator
- Diverse customer base
Growth and value parameters
- Reasonable price relative to historical valuation
- Reasonable price relative to takeover valuation
- High or expanding return on equity
- High or expanding operating margins relative to peer group
Sell discipline
- Deterioration of the company’s fundamentals or failure of original thesis
- Slowing of earnings growth
- Price appreciates above sustainable level
- Occupation of too large a portion of total portfolio
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