The Process
With the Bizzarro Group, there's no guesswork or emotion involved in deciding when to buy or sell. The decision to buy a certain stock is based on three research disciplines: fundamental, technical and quantitative analysis. To be considered for our portfolios, a stock must achieve minimum ratings in all three areas, plus a high aggregate score.
A stock position may be sold when its individual fundamental, technical or quantitative score or its aggregate score has fallen below a certain threshold, or when the balance between sectors is adjusted. A stock position may also be rebalanced to ensure its weighting doesn't account for too much of a particular portfolio. This rebalancing process locks in some gains, while protecting your portfolios from being overexposed to one stock.
Fundamental analysis
Research on individual companies is considered from many sources, including RBC Capital Markets and several other leading North American firms. This research is complemented by the independent views of the many portfolio managers and research analysts at RBC Asset Management.
Technical analysis
Stocks are rated according to historical price trends—both absolute and relative to stock market indexes—over a variety of time periods.
Quantitative analysis
Stocks are ranked based on quantitative data such as past financial performance, earnings growth, revenue growth, earnings-estimate revisions and debt levels.
