We narrow the universe of companies by applying our investment edge to construct a portfolio with what we believe are the most attractive opportunities. We believe our Investment Edge is our Total Points, which drives Portfolio Construction, and includes Regime, Factors and Flags.
- Small Cap Value
- Micro
Investment Edge
Regime & Factors + Flags = Total Points & Portfolio Construction
Click the components below for more information.
Regime & Factors
Regime adjusts the Factor weights based on the market environment. Factors identify companies that we believe have inexpensive valuations, are high quality and have strong market reaction.
Our Regime adjusts the Factor weights based on the market environment. Our Factors identify companies that we believe have inexpensive valuations, are high quality and have strong market reaction.
Sub-Factors used for the Total Points include, but are not limited to:
Valuation
- >> Adjusted Valuation Multiples
- >> Cash Flow, Earnings
- >> Discounted Cash Flow Valuations
- >> Bank Deposit Premiums
- >> …
… means all Sub-Factors are not listed.
Quality
- >> Economic Returns
- >> Balance Sheet Strength
- >> Earnings Quality & Consistency
- >> Capital Allocation History
- >> …
Market Reaction
- >> Estimate Revisions
- >> Stock Price Trend
- >> Share Turnover
- >> Short Interest %
- >> …
Flags
Highlight what we believe are companies’ weaknesses, strengths and liquidity.
Our Flags highlight what we believe are companies’ weaknesses, strengths and liquidity.
Risk Flags
- >> Leverage & Bankruptcy Risk
- >> Unsustainable Earnings
- >> Insider Selling on Price Weakness
- >> “Transformational” M&A
- >> …
Positive Flags
- >> Insider Buying
- >> Insider Ownership
- >> Compounder of Capital
- >> Business Improvement
- >> …
Liquidity Flags
- >> Median Daily Dollar Volume
- >> Option Availability
- >> Index Membership
- >> Free Float Percentage
- >> …
… means all Flags are not listed.
Total Points & Portfolio Construction
Our Investment Edge is our Total Points, which drives Portfolio Construction.
We narrow the universe of companies, which include approximately 2,500 companies in our investable universe for each strategy, by applying our investment edge to construct a portfolio with what we believe are the most attractive opportunities. We believe our investment edge is our Total Points, which drives Portfolio Construction, and includes Regime, Factors and Flags.
Portfolio Construction decisions are driven by Total Points, current holding weights, and target number of holdings. Our portfolios range from 40 to 80 holdings.