Our active investment management style integrates fundamental bottom-up research, direct company interactions and our proprietary Quality + Value + Business Momentum framework. We utilize diversification and position size control as risk management tools.
We use quantitative tools to screen the global universe of about 40,000 companies based on the level, trend, and volatility of various quality-focused financial metrics, including financial quality, revenue growth and net income growth.
Next, we apply qualitative analysis and quantitative tools to identify companies with quality business models, strong earnings per share growth and valuations that we believe are favorable based on earnings metrics.
Because we are long-term investors, we use calls and visits to evaluate management quality, best-in-class status or potential, and other qualitative characteristics.
For companies identified as high potential, we build a fundamental earnings model to assess growth potential.
We evaluate the company against its global peers by sector and geography. Our goal is to understand the relative attractiveness of the business model against competitors.
For companies identified as high potential, we assign quality, value and momentum scores as a way of standardizing company assessments. By adding this data to our analytics platform, we’re able to use our proprietary models to interpret and leverage actionable intelligence on companies.
We believe that tapping into the collective experience and insights of our research team can lead us to superior decision making.
The portfolio managers use the quality, value, momentum (QVM) framework for position sizing, portfolio construction, risk management and buy/sell discipline.
As long-term investors, we strive for low turnover of positions. We are continually reviewing and assessing our portfolios against new investment opportunities and additional information gained through ongoing due diligence.