Fundamental Stock Selection + Quantitative Portfolio Construction

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Broad Mandate

  • Unconstrained by geography, sector or market capitalization
  • Can take advantage of valuation disparities across these factors
  • High active share

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Fundamental Stock Selection

Repeatable process anchored by Foresight's  "three bucket framework" (right)

  1. We screen for value and momentum (both price and fundamentals)
  2. Next, we analyze the business models and  drivers
  3. We assess valuations and upside/downside scenarios to reach a verdict on the risk/reward presented by the stocks 

Compounders

 High quality businesses that benefit from sustainable competitive advantage and are expected to outperform for years 

Yield

 

Yield stocks pay a high or growing dividend that is sustainable

Opportunistic

 Opportunistic positions are generally stocks poised to benefit from a secular or cyclical dynamic that has not yet been priced in  

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Quantitative Portfolio Construction

  • Proprietary rules-based risk management process leads to more consistent outcomes and superior risk adjusted returns 
  • High conviction portfolio of approximately 40 stocks tilted towards our top picks
  • Systematic approach keeps subjectivity and emotion out of sizing decisions