Process

Investors often ask, ‘What was your return last year?’ but that’s the wrong question since past performance is no guarantee of future results…

The better question is ‘What is your investment process and is it repeatable?’

For over three decades Martin Yokosawa has managed funds at a high level in the micro, small and mid-cap space with direct exposure to many market cycles leading to the understanding of how those cycles impact investments
Earnings growth drives stock prices – It is easier for a smaller business to double earnings from a $15 million base than it is for a large cap to double earnings from a $5 billion dollar base
Our focus produces ideas in a relatively underfollowed universe with pricing inefficiencies that can be capitalized on by a seasoned portfolio manager
Minimal Institutional Ownership – Establishing a position in a business before institutions enter en masse can lead to significant upside

The Torii® Approach

Superior returns can be accomplished by identifying businesses with rapidly growing revenues and earnings trading at a reasonable price
Bottom-up fundamental approach to stock investing
Focus on primary market research to adapt to changing economic and market environments
Disciplined application of investment philosophy and process

Revenue & Earnings Growth: A business should exhibit rapid growth in revenues and earnings
Low Price/Earnings to Growth Ratio: At time of purchase, a company should have a price-to-earnings ratio of less than its expected forward growth rate
Growth Prospects: We identify businesses with products or services that offer the opportunity for substantial future growth
Market Capitalization: We search for the most attractive and relatively undiscovered growth ideas in the micro, small, and mid-cap space.
Relative Strength: A company under consideration should exhibit positive characteristics in terms of market and sector participation
Financial Health: Quality of reported earnings and future guidance is a focus in an attempt to establish earnings growth sustainability and management’s level of conservatism. We review the company’s financial statements to understand if they have a structure that will accommodate an increasing level of business.

Portfolio Manager with over three decades of experience in applying proven research and screening models resulting in the ability to identify underfollowed early stage growth opportunities that are attractively priced
Focused firm that has the capacity for additional assets under management
Single decision maker provides for more rapid investment implementation than larger funds
Boutique firm that is not encumbered with dispersion issues
Torii’s focused portfolio structure allows for each investment idea to have a meaningful impact