PCM views a securities investment as a direct, proprietary ownership interest in the underlying business. The cornerstone of PCM's value-focused philosophy is a determination and analysis of a company's free cash flows. In executing this philosophy, PCM builds a portfolio consisting of companies that have been analyzed on a fundamental level, and determined, through interviews by a member of its research staff, to possess several basic elements, including significant free cash flows, a substantial resource base, and a management team with the experience and intelligence to correct problems that have been excessively or inappropriately discounted by the public markets. Ultimately, PCM seeks to find and to capture for its clients undiscovered value that is not yet recognized in a company's stock price.