Equity Management


Based on our economic outlook, we select those sectors and industries that will benefit from the particular phase of the economic cycle.  Our portfolio managers who are responsible for the specific industries then identify those companies having the strongest fundamentals within them.  After a company has passed the initial screenings, it is subjected to our quantitative analysis through the following criteria:

  • Price to earnings ratio less than the S&P 500
  • Expected earnings growth rate greater than S&P 500
  • Return on equity greater than the S&P 500
  • The price to book ratio less than S&P 500
  • Dividend yield greater than S&P 500

Conversely these criteria combine to form the basis of our sell discipline:

  • The price to earnings ratio exceeds that of the S&P 500
  • Relative expected earnings will be less than the S&P 500
  • The return on equity is expected to falter
  • The financial security appears to be weakening