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Tell anInvestment Methodology
Van Arbor's portfolio manager Andrew Parkinson and his team employ an investment methodology based on value investment principles. The methodology is intended to create superior returns and minimize risk for the long term investor.
Andrew's systematic approach to equity selection, portfolio monitoring and portfolio management is based on a scientific and mathematical approach that is designed to remove human emotion from the investment process.
The investment methodology using real-time financial data evaluates each security analyzed as a potential component of the Funds' portfolios.
Analysis begins with initial screening criteria that eliminate companies that do not meet our strict minimum standards. A partial list of our screening criteria is as follows:
- Minimum market capitalization
- Minimum share price
- Low price volatility
- Positive Earnings Per Share growth
- Superior historical business performance.
Companies that meet our minimum screening criteria and requirements of historical performance are then considered for inclusion into the next phase of our portfolio selection process.
The next step in the analysis seeks to optimize the risk/reward trade-off by examining each candidate based on various forward looking and historical metrics such as volatility, earnings, dividends, and total return. Each metric category is given a mathematical coefficient to weight its relative contribution to a global score. The highest ranking securities are then chosen for inclusion in the Funds' portfolios.
In essence, we are looking for value stocks with a history of stable growth. Those stocks that best fit this profile will be most highly ranked and therefore included in the portfolio.
The purpose of our stringent equity selection process is to attempt to ensure that each security selected for the Funds' investment portfolios has a sound and stable financial record over a long period and has equally sound prospects for the future.
To enhance the returns of the portfolios, the Fund Manager applies a series of growth drivers including a strictly managed buying program, a comparatively low level of leverage, and risk management tools intended to provide protection against severe market volatility.
Once the portfolio is created, we monitor each portfolio stock to determine if and when it should be sold. Our sell criteria are as efficient as our buy criteria.
The end result is a leverage portfolio of value based equity securities with a strong history of growth. The results of Andrew's management of this investment methodology speaks for itself.
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