Process

Macro Economic View

Early through Insight

  • Trends in real GDP growth
  • Short- and long-term interest rates and yield curve
  • Inflation
  • Fed actions
  • Productivity gains and corporate cash flow

Results: Predisposition to themes and/or sectors

Fundamental Assessment

A great stock has Wall Street’s attention

  • Logan Ranking Algorithm methodically detects upward revisions in earnings growth
  • Rank ~1000 stocks
  • Focus: Top ~200 are ‘Buy’ candidates only if:
    • Fit with our macro view
    • Survive in-depth analysis
    • Have rising earnings tied to pricing power

Technical Profile

Remain sensitive to what the market is telling us

  • Buy decisions: Technical profile must confirm long-term underlying strength
  • Sell/Hold decisions: Use technical indications to confirm a change in our macro view or fundamental assessment
  • Can be an early indicator—causes us to check our work