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Growth Equity Approach and Process
SCM Advisors screens across all market capitalizations for earnings surprise and
earnings acceleration. We further screen for earnings quality and
sustainability, as well as reasonable valuations. The surviving companies
are subjected to rigorous fundamental analysis to determine overall quality
and potential return. We select stocks of companies which are growing at
rates which place them in the top ranks of the universe we screen, which are
producing quality, sustainable earnings; which have high quality management;
and strong financial characteristics. We meet with management prior to a
company's inclusion in the portfolio.
Approach and Process Highlights
- Fundamental results
- Earnings acceleration
- Earnings sustainability
- Large cap
- Controlled risk via diversification, beta control, and valuation constraints
- Screen
- Fundamental analysis
- Valuation
Sell Discipline Process
We sell stocks if earnings reports disappoint; if earnings prospects
deteriorate; if our confidence in management is impaired; or if valuation
levels are unsustainable.
Sell Discipline Highlights
- Earnings disappointment
- Fundamentals deteriorate
- Valuation
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