How We Invest

Our Process

Our investment process runs on a systematic, three-stage monthly cycle, which combines a first stage algorithmic, systematic screening with a second stage of qualitative due diligence undertaken by the investment team, followed by portfolio construction.

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Starting Point

Investment Universe

In order to gain inclusion in our investable universe of approximately 4,500 stocks globally, 3,000 international and 1,500 emerging markets, stocks must meet minimum market capitalization and liquidity criteria. We are entirely index unconscious.

Start the Process
Step 1

Automated Screening

We then mechanically screen and rank each company in our investable universe on the basis of each of our four target criteria. We are interested in the central core of names which most closely resemble our ideal company.

Next Step
Step 2

Team Due Diligence

We review the most attractive new ideas as well as all existing holdings, with the latter having to earn their place in the portfolio each month. Once again, this due diligence focuses on the extent to which each company exhibits the four characteristics we are seeking. The end result of this stage is a list of ideas ranked by our own level of confidence.

Next Step
Step 3

Portfolio Construction

As we now have a final ranking of the attractiveness of each stock, we are able to weight our portfolios accordingly, with those companies most strongly exhibiting our target characteristics earning the largest weights (subject to liquidity criteria) and those companies that no longer appear attractive are removed from the portfolio. Our adherence to this process means we are able to avoid the pitfalls and behavioral biases of traditional investment approaches.

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Who We Are