What is a Bottom-Up Investment Strategy?
The bottom-up investment strategy is an example of an investment approach that is based on a very narrow focus. The application of this type of investment strategy is normally based on considering only such factors as the business model for the company, as well as the current configuration of the management team, and the historical performance of the company. At times, the growth aspects of the company may also be taken into consideration, although this is not always the case. Choosing to engage a bottom up investment strategy means that several attributes that are often points of consideration are set aside. While the business model of the company is considered, it is not evaluated in relation to the models that are employed by the main competitors of the corporation, or with any comparison to what is considered the usual business model for that particular industry type. In like manner, the quality of the current management team is examined in light of their performance with in their
