5 Point Portfolio Modeling Process
1) Review of Economic Cyle
  • Recession, Recovery, Peak or Trough
2) Market Review
  • Examine markets to exploit the best return whether it be domestically (Canada) or internationally (US, Europe, Asia, etc.)
3) Security Review
  • Look for securities we believe to have growth and income (dividends) potential based on sectors and market overview.
4) Security Analysis
  • Thorough research of each company using the following factors:
Cash Flow from Operations
Free Cash Flow - Discounted
Balance Sheet
Growing Revenues
Growing Earnings
Low Debt/Equity
Price to Earnings Ratio
Return on Equity
Return on Assets
Return on Invested Capital
Management Team
5) Portfolio Construction
  • Core holdings - we first begin by adding names that will be part of the portfolio for the long term. These will include names with higher dividends, the strongest balance sheets and most consistent returns.
  • Growth holdings - position in companies that can add value over the short, medium and long term. Profits are added back into core holdings.