achieve a positive long-term return, relative to an appropriate
benchmark, that is competitive with low volatility (tracking error).
is an active strategy designed to capture excess return through our
proprietary multi-factor stock selection model. The Model weighs four
key investment concepts – Earnings Momentum, Price Trend, Management
Action, and Relative Value – according to our assessment of their
ability to forecast the expected return for each stock. The portfolio
is structured to capitalize on stock selection while minimizing
exposure to other residual risks, such as beta, sector/industry
exposures, and style (growth, value, and size). Disciplined portfolio
construction and cost effective trading are integral to our investment
process, helping us maintain the value added from stock selection and
reduce the probability of significant underperformance.
Stock Selection Model
How is the company priced relative to fundamental accounting measures?
Is the company doing better or worse than expected?
Which informational signals are we getting from management?