Multi-Cap Equity
Multi-Cap Equity rotates across investment styles, economic sectors and capitalization levels. We invest in high quality stocks which are currently oversold and poised to benefit from anticipated changes in market trends.

Our model filters all publicly available macroeconomic, fundamental and technical data. We identify long-term statistical patterns of broad market sectors (top-down) and individual securities (bottom-up).

Significant deviations from historical norms indicate a potential change in market trend. These changes often trigger major market responses. The portfolio is positioned to take advantage of trend changes through concentrated weightings in market sectors and individual securities.

Multi-Cap Equity
Portfolio Construction

INVESTMENT PROCESS: Quantitative

Our proprietary computer models screens all available economic, fundamental and technical data to guide our analysis.
PORTFOLIO CONSTRUCTION:  Concentrated
40-50 large and medium capitalization securities, characterized by concentrated sector weightings and security positions.
INVESTMENT STYLE:  Rotational
Active rotation across investment style and market capitalization in response to changing market conditions.
RISK PROFILE:  Aggressive
Aggressive sector and security positions produce above average levels of volatility.
PERFORMANCE:  Dynamic
Portfolios exhibit a low R2.

 

Investment Team:

 

J. Andrew Richey, CFA

"Our model rejects rigid definitions of value and growth styles. That thinking restricts investing in certain areas of the market when better opportunities lie elsewhere. We don’t sit on the fence watching good investments pass us by. We’re going after the best opportunities right now."
Multi-Cap Equity Security Selection Process
 

 

Multi-Cap Equity 
Strategy

Relative Valuation  Fundamental data is screened in order to identify those securities and sectors which exhibit a condition of "cheapness" relative to their own historical trading patterns and to the market as whole.
Statistical Trend Analysis  Statistical deviations often identify areas of the market nearing an inflection point, suggesting a trend reversal is likely.
Fundamental & Technical Evaluation  Qualitative evaluation of both fundamental and technical strength of individual securities and broad market sectors is performed in order to narrow the potential areas of investment.
Concentration and Active Rotation  Portfolios consist of 40-50 securities and are characterized by active rotation across market sectors and market capitalization ranges.