Our Investment Process

Our emphasis is on bottom-up stock selection with both fundamental and technical analysis as the cornerstones of our decision-making process. By making the connections that others miss, we seek to identify the best money-making ideas and then blend them to deliver attractive risk-adjusted returns for our clients. Our investment portfolios seek to generate substantial income and to compound that income at attractive rates over time. Our investment process is clearly articulated, transparent, and structured around three key components:

Idea generation

To identify the very best stock opportunities we primarily use a multi-factor screening process that reviews a universe of over 3000 stocks and ETF’s. Our objective is to find those companies or investments that meet or pass our quantitative and qualitative benchmarks.  This forms our best ideas list.

Portfolio construction

From our best ideas list, we construct well-balanced portfolios, with our belief that returns are driven by bottom-up stock selection. We review all portfolios continuously, actively looking at performance and sector weightings The size of our active positions are a function of expected stock upside and degree of conviction. In addition, stock weightings and the number of individual stock components will vary according to the risk tolerance of the client.

Risk management 

Portfolio management guidelines provide the foundation for our portfolio construction process. They help us manage the risks that we take, allowing us to set aside the emotion of volatile markets and rely on a disciplined allocation of our risk when picking stocks, and help us avoid unintended or positively correlated macro or thematic or factor risks. 

*We use time-tested limits of:

• No more than 5% of the value of a portfolio will be invested in a single security. 
• No more than 25% in a specific sector and 10% in a specific industry.
• If the value of a single security declines more than 10% within 30 days of purchase, the holding will be reviewed.

_{*There may be circumstances when these limits are exceeded.}