Equity Portfolio Management

Our investments are based on the relative valuation of the ten broad S&P sectors, sub-sector groups, and country / geographic regional indices across the world. Sector research is provided by third party independent macro research firms and generated internally. Other major considerations include supply and demand trends affecting sector profitability and sector price momentum. Our securities valuation process uses both an earnings/dividends discount model as well as a growth at a reasonable price (GARP) measure. We measure future value, then discount and adjust for volatility using beta as a proxy. Stocks trading at a discount to their present value, while offering a sufficient margin of safety, are deemed undervalued. Should a stock reach its future value, it is a sale candidate. Each buy candidate is supported by a formal written analysis stating the recommendation, rationale, valuation method used and an appropriate risk analysis.