The investment strategies offered through Threshold are intended to meet the objectives of Clients who desire positive returns. Threshold Capital Corp. does not intend to be an equity market timer, interest rate yield curve timer, or day trader. In order to demonstrate to Clients that Threshold Capital Corp. will be striving to generate positive returns, its Managing Director
– Peter A Delgado II, will invest his own capital alongside that of Clients on a parri passu basis. Threshold Capital Corp. firmly believes the investment process should focus on maximizing the total return while carefully managing levels of risk within the constraints of the Client’s investment objectives.
Threshold Capital Corp. conducts intensive fundamental research across all market capitalizations including special situation investment ideas. Threshold Capital Corp concentrates on individual ideas, and due to the in-depth nature of the research, it is anticipated that these ideas will be long-term oriented (longer than one year). Threshold Capital Corp. strives to invest in (purchase listed securities of) companies that are well-managed with high insider ownership, a consistent track record of internal growth, a high return on invested capital, and are dominant in their niche market. Purchase (long) ideas may be inefficiently priced in the market due to a lack of institutional awareness or a misperception about the business. Sell (short) ideas are businesses characterized by problematic fundamentals such as deteriorating balance sheets, negative cash flow, declining margins, and excess leverage. Also noted in conjunction with the above parameters for sell ideas are situations with very promotional managements, aggressive accounting, and extremely heavy insider selling. Threshold Capital Corp. utilizes stock screens, financial newspapers and magazines, investment newsletters, company news releases, and company financial reports filed with the United States Securities and Exchange Commission to identify investment ideas.