Economic, political and sentiment drivers shape portfolio themes and weights.
Basic quantitative screening process to help minimise risk and narrow the prospect list. Fisher Investments' Research Analysts screen any securities with insufficient liquidity or solvency. Securities are further screened based on Fisher Investments' macro views including valuation and/or style. Lastly, an outlier analysis is conducted to identify any stocks with categorisation, pricing, business activities and/or other characteristics outside of the peer group to ensure selected securities best leverage higher level themes.
Prospect list is further narrowed based upon fundamental research. Fundamental analysis includes:
Seek firms with underappreciated competitive or comparative advantages relative to peers.
Identify attributes that best leverage portfolio themes.
Evaluates if the firm’s management has a cohesive executable plan for exploiting its strategic attribute(s).
Examines current valuations relative to peers, historic valuations, and the market.
Operational red flag assessment to identify potential risks unrelated to valuations or day-to-day management.