Investment Strategy

Michigan Interactive Investments utilizes a multi-faceted investment strategy, involving both fundamental and quantitative analysis, to invest in equities, options, and fixed income instruments. We take a disciplined approach to investing, focused on a medium-term outlook for attractive returns while preserving capital. To that effect, we primarily use a bottom-up approach to source investment ideas, but also implement top-down and quantitative screening strategies to identify opportunities that will outperform our S&P 500 index benchmark. Additionally, we supplement this fundamental approach to investment selection with technical analysis to identify appropriate entry and exit points for our positions.

Our holdings are generally classified under one of the following investment strategies:

Fundamental Analysis

Through detailed industry research and firm analysis, MII selects equities that are appealing on a fundamental level. We look for names with compelling investment theses that are expected to play out over the course of 6-18 months. These core fundamental holdings aim to optimize alpha while also providing beta exposure.

Value Investing

MII finds investments that are trading at a discount to their intrinsic fair value by implementing a Warren Buffett-style value approach. We employ a rigorous valuation process by building discounted cash flow models, comparable analyses, and sum-of-the-parts valuations to find equities that will outperform its peers while minimizing risk.

Special Situation

Ideas in the special situations category look to capitalize on short-term catalysts that will enhance overall returns by identifying exceptional opportunities. These allocations focused on long/short, arbitrage, market neutral, and event-driven investments. Past special situation investments have focused on potential spin-offs, REIT conversions, and the unlocking of valuable assets such as land and wireless spectrum.

Income Generation

MII also invests in securities that provide significant yield and are protected by the underlying instruments’ cash flows. Bond funds, as well as dividend-yielding equities, are considered in this strategy in order to reduce volatility in our underlying portfolio balance while generating consistent income to supplement riskier investments.