Our active management approach is based on both a TOP-DOWN (macro) and BOTTOM-UP (fundamental) analysis. We focus on top-down analysis of such factors as global and domestic economy, government and political trends, demographics, and risk opportunities in various industries and subsectors.
In our fundamental (bottom-up) analysis, we regularly screen more than 1,000 companies for investment opportunities based on up to 275 different measurements of operational performance and valuation. This is complimented by our detailed analysis, which looks at specific company business models, profit strategies, and management teams. We also analyze financial statements, SEC filings, earnings reports, Wall Street research reports, earnings estimates, and analysis’s recommendations. We compare this against our own earnings outlooks and valuation analysis, and determine the main catalysts that drive valuation of a company.
For securities that pass our top down and bottom up analysis, we determine the potential upside and downside risk/reward scenarios before we add the security as a holding to one or more of our strategies.