- Systematic, rigorous, and methodical investment process.
- Well defined inputs (fundamental, quantitative, and trend) to enhance analysis and decision making.
- A strong sell discipline.
- Independent analysis and access to top ranked research (BMO Capital Markets, JP Morgan, Lowry, ARC Research and CornerStone Macro).
Our team’s investment methodology, known as the Three Pillar Approach, combines three methods of analysis:
Step 1 -Qualitative fundamental analysis
- Traditional qualitative fundamental analysis, itself a combination of macro analysis and company analysis;
- Quantitative analysis, which utilizes multivariate factors models applied through computer screens; and
- Trend analysis, which utilizes market trend recognition indicators.
Step 2 – Quantitative analysis
- Establishment on long term investment themes.
- Identify consumer, demographic and technological trends to identify top industry leaders.
- Macro-Economic research using BMO Capital Markets and Cornerstone independent research.
- Research from BMO Capital Markets, JP Morgan and access to other providers.
Step 3 – Trend analysis
- Companies with strong fundamentals then go through Factor based analysis using independent research software to allow comparison of key ratios to identify best Safety, Value and Timing characteristics.
- Establish ranking and monitor second derivative trends of those rankings.
- Identification of major market trends rankings and top performing sectors
- Companies that go through steps 1 and 2 now must show consistent and superior relative strength to markets and competitors. Historical and consistent relative strength combined with Positive trends are key factors we look at.
The outcomes of the three analytical methods are combined to arrive at an overall assessment of a security. The process is holistic and each pillar is independent. This feature increases objectivity and reduces emotional biases.