In a recent episode of “Behind the Ticker,” Andrew Skatoff, founder of Bancreek, shared insights into his journey and the innovative investment strategies his firm employs. Skatoff, who graduated from Columbia Business School’s value investing program in 2009, began his career in the family office world, where he developed a deep understanding of long-term capital compounding. This experience led him to create a strategy focused on investing in structurally advantaged businesses, which he later spun out into Bancreek in 2021 to serve other family offices and investors.

Skatoff explains that Bancreek’s investment approach is heavily data-driven, relying on a combination of fundamental and quantitative factors to identify businesses with long-term compounding potential. The firm employs a chief data scientist and utilizes sophisticated modeling and simulation techniques to analyze a vast array of data. This quantitative approach allows Bancreek to identify companies with unique competitive advantages, such as robust distribution pipelines, significant brand equity, and strong network effects, which can sustain growth and compounding over long periods.

Bancreek has launched two ETFs to bring their investment strategy to a broader audience: BCUS, which focuses on US large-cap companies, and BCIL, which targets international large-cap companies excluding the US. Both ETFs are constructed using a proprietary ranking system that identifies and weights approximately 30 top businesses based on their structural advantages. This methodology aims to provide investors with a diversified portfolio of high-quality, growth-oriented companies. The ETFs are refreshed monthly to ensure they reflect the latest data and insights from Bancreek’s quantitative models.

Skatoff also discusses the challenges and opportunities of entering the ETF market. He emphasizes that Bancreek’s unique value proposition lies in its ability to apply quantitative analysis to long-term investing, differentiating it from other short-term or momentum-driven strategies. To promote their ETFs, Bancreek focuses on education and transparency, offering data visualization tools and resources on their website to help investors understand their investment process. By engaging with advisors and attending industry conferences, Bancreek aims to build awareness and demonstrate the potential of their innovative approach to portfolio management.