Active Equity Approach
We apply an initial screen to all stocks in our investment universeto select stocks with the most attractive relative valuations. Our region-specific analysts then apply fundamental business analysis to the resulting 100 to 200 stocks. Stocks which meet our rigorous criteria and which managers believe have the best current risk/return profiles are included in the portfolio of 80 to 100 stocks.
1 Valuation Screening
Initial Screening of the Approximately 1500 Stocks in the MSCI EAFE Index and Emerging Markets to Identify Companies With:
- Attractive Relative Valuations
- Favorable Price/Cash Flow Ratios, Price-to-Book Values and Other Valuation Methods
2 Fundamental Research
- Distinct Catalyst
- Fundamental Influences
- Margin of Safety
3 Portfolio Construction
- Methodical Review on Business and Economic Cycles
- Stock Characteristics Importance Shift at Different Stages in the Cycle
- Select Favorable Risk/Reward Combination for Current Stage
4 Risk Control
- Methodical Portfolio Review Process
- The Maximum Single-Stock Concentration Allowed is 5%
- The Maximum Allocation to a Sector is +/- 6 Percentage Points vs. the Benchmark
- Portfolios Generally Hold Between 80-110 Stocks