- Find normal fundamentals through fundamental research, including strategic analyses such as positioning and competitive forces analyses
- Research and score each company on business and credit risk in order to accurately calculate each stock's discount rate
Step 2. Return Analysis
- Each stock's intrinsic value is calculated with our proprietary 4-stage dividend discount model, using normal fundamentals and discount rate
- Calculate each stock's alpha, price/intrinsic value ratio, and rank each stock accordingly, to generate a model portfolio
Step 3. Portfolio Construction
- Analysts make recommendations, improving on the model portfolio
- Portfolio managers integrate recommendations into the client portfolio, taking correlation and risk concentration into account, then optimize the client portfolio within the constraints of the client portfolio's risk budget
