Research is central to our approach – fundamental, technical and quantitative research. We link fundamental analysis with technical and quantitative analysis to identify equity securities with compelling risk/reward profiles.
For our clients with Growth and GARP portfolios, we look for good, one-of-a-kind, companies with proprietary products and/or special know-how that are at inflection points in their life cycle. The sales and earnings growth rates of those companies begin to accelerate and they begin to exceed expectations on all metrics. Revenue estimates are exceeded and margins expand rapidly, producing positive earnings surprises. The balance sheet gets healthier as each quarter passes. We tend to hold a stock until the company’s higher sales and earnings growth are more difficult to come by, the company’s rate of earnings growth begins to decelerate or the risk/reward characteristics deteriorate. For our clients with Income and Value portfolios, we look for companies that are cheap on an absolute basis, where we believe fundamentals are positive or about to turn positive and where they have room to grow dividends at a double digit rate.