Our stringent screening process creates a scaffolding that ensures we do not waste time on companies that are fundamentally unfit for long-term investors.
We then use a creative synthesis of analytical tools to study the companies that remain in our investable universe, and translate the resulting insights into portfolios with the help of decision aids.
Why do all this? Because we know it's crucial to continuously improve our investment decisions by revisiting them rigorously, regularly, and holistically.
We score each issuer or security that makes it through our screening process on wide-ranging criteria. Any material factor can affect a security’s score, but the following six areas usefully summarize the most common contributors. Mousing over each area will reveal some illustrative indicators we use.
The tabs below detail how the scoring process informs portfolio construction in our strategies.
All investors must make decisions with incomplete information. But we can sharpen our intuitive powers by organizing observations into testable forward-looking narratives in a process known as scenario analysis.
While in a prior role at CFA Institute, Sloane co-authored the textbook embedded here which identifies sources and methods investment teams can use to harness the power of this process.
The following practices discussed in the book are key components of our investment process, and particularly the way we collaborate internally:
Each process cycle culminates when we rebalance our portfolios on the new moon.
As we begin the next cycle anew, we evaluate past decisions and attempt to identify recurring weaknesses in our thinking.
