Most Frequently Asked Questions

What is your "Suspect List" and how does it relate to your sell discipline?

Our selling strategy further contributes to mitigating portfolio risk.   This strategy was developed around the philosophy of maximizing alpha and minimizing opportunity costs. Stocks that violate one of the three sell criteria are placed on the suspect list where they are assessed based on: deterioration/change in fundaments, deterioration/change in technicals, and down 20% from costs.   The analyst sponsoring the stock on the suspect list has the opportunity to defend his or her position by introducing new catalyst and presenting the idea to the team.   If the team agrees to retain the position, the new catalsyt must be realized and the stock’s performance must improve within 90 days or the position is sold. Our suspect list has been instrumental in reducing human biases and allows us to remain focused on our winners.

Criteria for "Suspect List"/sell discipline include the following:

1. Price target reached;

2. Deterioration/break in fundamentals - break in key variables, EPS declining;

3. Deterioration/change in technicals - below 200 day moving average;

4. 20% price decline from cost;

5. Catalyst realized; not reflected in stock price;

6. Stock grows overweighted (>5%).

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