Investment Process
We believe our unique, collaborative, research-driven approach to stock selection offers the best opportunity to achieve superior, risk-adjusted returns over the long term.

Portfolio managers, fundamental research analysts, and quantitative research analysts collaborate to identify the best opportunities in the equities arena.

Our process ensures that all team members focus on the key drivers of stock performance – business fundamentals, valuations, and catalysts.

This dynamic team approach encourages team members to challenge assumptions with the goal of achieving superior performance. Presiding over this exchange of ideas is the portfolio manager, who ultimately makes the buy and sell decisions.

Both our fundamental and quantitative teams have a disciplined process for rating each stock. These ratings are derived from a detailed analysis of more than 200 factors. This system allows the team to make decisions with direction and objectivity.

Our risk management process continuously reviews and monitors the portfolio to ensure that we take the appropriate amount of risk.

Portfolio Focus

First, we identify what we believe are potentially the best large-cap companies using proprietary quantitative screens, our internal database, investor conferences, and management contacts. Quantitative analysis will subsequently inform every step of our investment process.

Next, analysts and portfolio managers use fundamental research to identify the companies in this group that have sustainable, superior earnings growth based on strong fundamentals.

Because great companies are not always great investments, we screen every potential buy candidate to determine the stock’s valuation range relative to the sector, industry, and its own history.

In considering each buy candidate, we look for a catalyst that may propel the growth of the stock in the near future. Catalysts may be economic or industry-related, or specific to the company.

Holdings are sold if they achieve price target, if their position exceeds portfolio parameters, or if we predict a deteriorating outlook or significant change in company fundamentals.

Risk Management
Aside from guiding our efforts to deliver positive performance in up markets, our disciplined investment process – specifically our strict sell discipline – helps limit downside risk. We also manage risk by being fully diversified across all sectors and continuously monitoring individual issues and sector parameters.