While our analysts typically develop their own proprietary earnings models, we do not have standardized valuation criteria, a mandatory screening process, or an overriding macroeconomic model. Instead, our analysts are empowered to find the financial model they believe best characterizes the industry they cover. In this way, fundamental, bottom-up research drives our firm’s investment methodology.
Analysts evaluate companies’ management structures, financial strength, resources, products, services, business climate, future earnings and dividends. Such fundamental research is crucial for identifying investment opportunities and risks. This on-the-ground research is combined with comprehensive macro analysis, with our equity and fixed income analysts working together to pool resources.
By identifying the difference between the underlying value of a company and the price of its securities, Capital builds its portfolios on a stock-by-stock basis, regardless of their size or volatility relative to their benchmark. Our focus is on long-term investing, not on short-term market swings. Our analysts look for attractively valued companies that can be core holdings for many years.
Other considerations include an appraisal of social, economic, cultural, political, industry and currency factors — all of which may affect the company's financial condition and outlook