Security Selection

Our Security Selection Process Involves:

Security Selection Chart Long Description

This flowchart depicts the security selection process, divided into three stages: Global Macro Driver Analysis, Prospect List Definition, and Security Analysis. It begins with analyzing economic, political, and sentiment drivers to shape portfolio themes, followed by screening securities based on liquidity, solvency, macroeconomic views, and outlier analysis. The final stage identifies firms with unique competitive advantages that align with the portfolio's overarching themes.

Identifying Macro Drivers

We analyze economic, political and sentiment drivers to shape portfolio themes and weights. We apply this analysis throughout the individual security selection process.

Prospect List Definition

We conduct basic quantitative screening to help minimize risk and narrow our security prospect list.

Initially, we screen out any securities with insufficient liquidity or solvency issues.
We then screen securities based on our macro views including valuation and/or style preferences.
Lastly, we conduct an outlier analysis to exclude securities with categorization, pricing, business activities and/or other characteristics outside of the peer group. This step ensures we identify securities that best leverage our higher-level themes.

Strategic Attribute Identification

We seek firms with underappreciated competitive or comparative advantages relative to peers.