Our Investment Process

How do we invest?

Upon completion of an Investment Policy Statement (IPS) that is suitable for you, we will proceed with the building and maintenance of your portfolio. This is an extensive process that involves the actual security and product selection, the monitoring of all existing positions from a fundamental and technical level, and the rebalancing of the portfolio to ensure that the portfolio continues to match with the asset allocation and risk philosophies agreed to in the IPS.

We have a systematic approach to producing investing ideas and determining the value of a company. Our first step to generating investment ideas is the use of an appropriate negative screen suited to your risk tolerance and investment goals. A negative screen allows us to essentially filter out companies that don’t exhibit core fundamental factors, such as a minimum market capitalization, or positive earnings. This screen leaves us with a list of companies that we use for our second step.

The second step we use is a fundamental ranking model, where we use the filtered list of companies and rank them based on over 20 fundamental factors, ranging from dividend yield to debt levels to cash flow growth. This method allows us to rank the companies by the qualities that we deem important in the way we view companies.

The third step is the development of price targets and fair fundamental values through financial modelling and forecasting. This allows us to dig deeper into these companies as a means of determining if we want to own the company, and at what prices we would be looking to buy and sell.   

The final step in the process is a large part of our value add. This is the implementation and timing of trades in the account, as well as the implementation of an option overlay strategy on the portfolio. The main reasoning for this step is our belief in the risk reduction and yield enhancement benefits that can be gained through the use of options on portfolio holdings. During the IPS process, we will work with you to educate you on the potential advantages and disadvantages of different option strategies, as well as to lay out the types of strategies allowable in the portfolio.

Have Questions?

We would be glad to speak with you in more detail regarding our Portfolio Managed Account program and how it can become a viable solution for you. Please go to our Contact Us page for the best ways to reach out to our team.