Step 1
Business quality review
The starting point is the quality of the underlying enterprise, including economics, incentives, industry structure, and durability of returns.
Underwriting Process
Capital is committed only after business quality, valuation, and downside are studied together.
Touzani Capital evaluates opportunities through a business-first underwriting framework. The process is intentionally selective and is designed to understand downside before upside is embraced.
High-Level Steps
A concise underwriting sequence for public equities.
Step 2
Balance sheet and fragility assessment
Leverage, liquidity, refinancing risk, and adverse-case resilience are studied before a valuation discount is treated as meaningful.
Step 3
Valuation framing
Price is compared with an estimate of intrinsic value under realistic, not promotional, assumptions about cash generation and capital intensity.
Step 4
Downside-first decision making
Position sizing, timing, and willingness to act are shaped by downside asymmetry, opportunity cost, and confidence in the underwriting case.
Economic moats
Durable competitive advantages matter because they support resilience in adverse conditions and can make valuation gaps more investable.
Selective capital deployment
Not every undervalued security deserves capital. The bar for action is intentionally high and remains benchmark independent.
Options-based exposure management
Where appropriate, advanced options structures may be used as a tool for exposure management, downside framing, or capital efficiency within a controlled risk process.
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