Equity portfolios are constructed using a proprietary three-pronged approach; fundamental, economic, and technical. The selection process utilizes fundamental analysis for company selection; economic analysis for sector and asset choice; technical analysis for entry/exit determinations. Equity selections are evaluated on a value basis, seeking out investments that also demonstrate a significant growth opportunity.
The Addison Capital investment approach seeks to add value through bottom-up stock selection. In-depth fundamental research drives our investment decisions. The firm generates its initial investment ideas from a number of sources, including organic ideas, proprietary screens and bottom-up themes. This eligible universe is then streamlined to an investable universe of roughly 40 companies. Investment ideas that survive this initial research stage are subject to rigorous and detailed fundamental analysis before being purchased into clients’ portfolios.
Portfolios are diversified across numerous sub-classes to gain exposure to both domestic and international equities of Small, Mid, and Large capitalizations. The allocation of these sub-classes is a simple function of overall opportunity.