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Our philosophy is based around two fundamental priorities: researching high-quality investments that meet our clients’ long-term objectives and taking a “less is more” approach to risk—less risk and volatility in exchange for more stability and peace of mind. Backed by our team’s own proprietary investment tools and expertise paired with the unparalleled knowledge of our investment experts, we analyze five key metrics to define the quality and risk of a security before designing your customized portfolio.
We evaluate a company’s level of debt to determine their financial leverage, ensuring we mitigate potential shareholder losses during times of recession or when valuations are under pressure.
We investigate a company’s operating leverage—the portion of fixed costs within the cost structure—to assess their break-even point and protect against an unexpected economic slowdown.
We analyze whether a company has a healthy free cash flow that empowers executives to reinvest in the business, reduce debt levels, and return funds to investors in the form of dividends or share buybacks.
We measure the profitability of a company in light of the amount of capital employed, seeking to determine the quality and performance of the company’s operations and management teams.
We seek out transparent companies whose managers have demonstrated an exceptional track record of leading large companies and whose interests are aligned with those of the shareholders.
If you’d like to discuss our investment philosophy in more depth, we invite you to contact us and we’d be happy to chat.
Five key steps to identify the most suitable stocks, build well-structured portfolios, and maximize long-term results.
The first step in our investment process involves identifying high-quality companies in various business sectors according to our criteria outlined above: level of dept, operational leverage, free cash flow, return on invested capital, and quality of the management team.
Once our team has identified higher quality securities by industry, we perform in-depth, fundamental analyses to better understand potential returns and downside risk, leveraging our access to world-class research services from in and outside RBC.
Following our fundamental analysis, we use a variety of valuation methods to compare companies with the valuation of its peers that operate in similar industries, and we also assess the current valuation of a security in the context of its historical range, interest rates, and more.
Once we’ve pinpointed companies that meet our quality criteria, have good fundamentals, and trade at fair valuations or better, we construct your portfolio, regularly running simulations and stress tests to measure the impact of our expert recommendations and better understand risks under potential economic shocks or scenarios.
We monitor all the securities held in your portfolios and pay particular attention to securities with valuations that are no longer warranted, have a deterioration in quality, or for which the outlook has become less attractive, ensuring we can make timely transactions to improve the performance and the quality of your portfolio.
Discover why Team Marchand Filiatrault is the partner of choice for successful business owners, entrepreneurs, and families.
