Security Selection

Picking the Companies that Make Up Your Portfolio

Fisher Investments applies investment themes through the portfolio construction process, believing the majority of long-term portfolio performance comes from macro decisions. Individual securities are selected to leverage Fisher’s top-down views, which can provide significant value.

Fisher Investments' Security Selection Process Involves:

Fisher Investments Top Down Approach

Identifying Macro Drivers

Fisher Investments will analyse economic, political, and sentiment drivers to shape portfolio themes and weights. This analysis is applied throughout the individual security selection process.

Prospect List Definition

Basic quantitative screening helps minimise risk and narrow the security prospect list and involves the following steps:

  • Screen out any securities with insufficient liquidity or solvency issues.
  • Then screen securities based on Fisher Investments’ macro views including valuation and/or style preferences.
  • Lastly, conduct an outlier analysis to exclude securities with categorisation, pricing, business activities and/or other characteristics outside of the peer group. This step identifies securities that best leverage Fisher Investments’ higher-level themes.

Strategic Attribute Identification

Fisher Investments seeks firms with underappreciated competitive or comparative advantages relative to peers.

Security Selection

Fisher Investments narrows the prospect list based upon fundamental research, which includes

Strategic Attribute Preferences

Identifying which attributes best leverage Fisher’s portfolio themes.

Attribute Execution Analysis

Determining if the firm’s management has a cohesive, executable plan for exploiting its strategic attribute(s).

Relative Valuation Analysis

Examining current valuations relative to peers, historical trends, and the market.

Operational Risk Assessment

Analysing operational red flags to understand potential risks unrelated to valuations or day-to-day management.

From Opportunity to Reality

The opportunity set for global equities is vast. Learn how Fisher Investments distills the investment universe to build custom portfolios.

Image of the Prospect List graph based on security selection and country, sector, thematic weights 
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