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:
- Increase in quality earnings
- Stable capital structure
- Efficient assets’ utilization
- 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:
- Increase in quarterly earnings and quality of earnings
- Increase or stable capital structure
- Increase in efficiency of assets’ utilization
- Increase in capital expenditures over the past three years
- Increase in dividends
- 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.