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Porter Capital Management believes there
are areas of market inefficiency that can be identified and hence
exploited, providing us with opportunities to deliver out-performance to
investors.
We believe company fundamentals drive
investment returns over the long-term, and that the key drivers of
out-performing companies can be identified by in-depth analysis, using
our mandatory rules.
We also
believe that behavioural analysis validates critical information, is a
valuable secondary filter, and, when used in conjunction with
fundamental analysis, increases the expectancy of positive fundamentals
translating into share price out-performance.
We employ a two-phase investment model to
identify those areas of market inefficiency:
1. The
Fundamental Phase uses financial information produced by all companies
in our investment universe. This data is then analysed using
quantitative methods.
2. The
Behavioural Phase is used as a tool to identify strength and pricing
trends occurring within each company selected by the Fundamental Phase.
This analysis is designed to ensure that the favourable fundamentals
that have been identified are being translated into share price
performance.
Porter Capital Management then regularly
re-applies and re-analyses the data from both phases to manage existing
positions and to monitor for new opportunities.
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