by IRON Financial

UncategorizedSeptember 23, 20200 comments

New to the Equity Family

Our latest solution, the High-Quality Minimum Variance Equity Strategy (HQMV), is a large-cap, actively managed, minimum-variance portfolio equity strategy that seeks to generate capital growth in every market environment.

What’s the strategy?

HQMV seeks to identify firms that are simultaneously improving on four pillars: 

1. Increase in quality earnings
2. Stable capital structure
3. Efficient assets’ utilization
4. Prudently reinvest excess capital

This is important because these factors demonstrate the potential to generate consistent and superior risk-adjusted returns versus the broad market.

How do we select stocks?

We select stocks from the S&P 500 Index universe based on the following relative factors: 

1. Increase in quarterly earnings and quality of earnings
2. Increase or stable capital structure
3. Increase in efficiency of assets’ utilization
4. Increase in capital expenditures over the past three years
5. Increase in dividends
6. Decrease in net equity offered (share count)

These factors are ranked individually using standardized scores and then combined in a composite to determine eligibility for inclusion in the portfolio. Only fifty stocks will make the cut.