Fundamental Approach
Understanding Dynamics
In the short term the market is a reacting machine but in the long term the market is always a valuation machine. To win – one must look past the short term voting of the market and establish positions that are based on a fundamental approach to valuations. Our process does just that. We dive into the dynamics of the day-to-day swings of the market and understand them, but in the end we know that a superior track-record is based on the understanding that valuations count.
Our process starts with a quantitative approach to determining when to overweight equities or bonds. Each month our investment committee reviews four back tested and proven valuation models. We equally weight these models to determine what equity to bond ratio our portfolios should hold. We then overlay these results to where we are in the business cycle.
