Research
Stock Analysis
Themes are implemented at an individual stock level:
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- Our Micro Themes Matrix sets out individual stocks that we expect will be positively affected by the drivers, enablers and associated themes that we have identified
- Proprietary software has been developed to set out key information which is used by the Investment Team to screen stocks
- Free Cash Flow – the analysis of cash flows is an extremely important technique used to assess the quality of earnings
- A high and sustainable Return on Capital Employed (ROCE)
- Market rating – discount or premium
- Gearing – debt/equity ratio and interest cover
- Further qualitative evidence – including understanding management strategy, style, experience, strength, and any perceived regulatory risk,
- Quantitative methods – use of quantitative screening tools
- Market liquidity and volatility
- Technical analysis – consideration of momentum
Our internal rating system provides the Investment Team with a focused conclusion. The rating system considers our analysis, the quality of a company, the price opportunity and sentiment data.
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