Step 1 : Screening of the investment universe
- We apply quantitative screens to our investment universe of more than 3000 listed companies
- These screens identify potential investment targets
Step 2 : Company fundamentals analysis
- We aim to understand companies by meeting one-on-one with their managers
- This approach allows us to fully grasp the company’s strategy, its business model, and its environment and to measure its quality on the basis of fundamentals.
Step 3 : Valuation of companies
- Our objective is to determine companies’ intrinsic valuation
- We prefer the fundamental valuation methods developed using our proprietary tools
- Our universe of eligible stocks is composed of companies trading at discounts to our target valuation
Step 4 : Portfolio construction
- We invest in our strongest convictions from the list of eligible stocks, based on our portfolios’ targeted returns
- To determine a stock’s target weighting, the investment team uses the multi-criteria scoring methodology that informs our buying discipline
- Stocks that do not meet our standards on security and upside potential are sold immediately
