Approach and Process
Fundamental analysis (examining a company’s financials and operations such as sales, earnings, debt levels and management) is at the core of our research. We focus heavily on supply chain analysis, and piece together information from various sources. This allows us to develop proprietary insights and ultimately arrive at better informed and high conviction investment decisions.
There are four steps to our investment process.
- Idea generation. We automatically research and assess all companies within the top 100 of the Australian Securities Exchange (S&P/ASX 100). When assessing a company, we conduct in-depth analysis of its competitors, customers and suppliers. This process can reveal investment opportunities outside of the S&P/ASX 100.
- Stock selection criteria. Our investment process involves assessing stocks against set criteria such as shareholder stewardship, business evaluation, valuation and market milestones.
- Stock ranking process. Following this analysis, we assign a stock rating to each company. This rating reflects our view of the likely relative performance of the company.
- Portfolio construction. Typically the stocks with the highest rating will have the biggest portfolio positions. We review initial portfolio construction with consideration for potential factor exposures, liquidity risk, macroeconomic issues and mandate restrictions.
Please contact us if you require more information.