Equities

Disciplined Stock Portfolio Management

A multidisciplinary approach is used in the selection of stocks for each portfolio:

  1. Quantitative models are used to highlight stocks with the best growth and value characteristics (e.g., earnings growth, re-investment rate, analyst revisions, cash flow, dividend history, and earnings stability). Earnings growth and estimate revisions for each sector or market are also monitored to look for areas with above average growth and value characteristics.
  2. Technical analysis is used to pick certain entry/exit or trim/add points with respect to stocks that historically represent overbought or oversold levels. TriDelta will always be aware of each stock’s natural level of support and resistance. These levels help give cues to see if the stock is being accumulated or sold by the market participants. Many different inputs are used including trend following, support and resistance levels, market cycles, as well as sentiment indicators.
  3. Fundamental analysis is completed using internal and external research to see if any factors influencing the growth and stability of earnings may change in the future (e.g., product developments, competitive forces, lawsuits, and management decisions or issues that directly affect a company’s particular sector).

 

We offer both SMA (Separately Managed Portfolios) and pooled fund solutions to match a variety of client profiles and life stages. Furthermore we manage two primary approaches:

The TriDelta Pension Portfolio, which is a Growth and Income portfolio, which focusses on capital preservation and conservative investments typically for retired and advanced life stage clients.
The TriDelta Growth Portfolio, which as the name suggests, has a Growth focus and emphasis on capital appreciation.

 

One of the key factors that set us apart is our sell discipline. TriDelta uses specific quantitative screens to help determine if an investment, held at a loss or approaching our target price, ought to remain in the portfolio. If any of the indicators or other fundamentals that favoured the security’s original purchase turns negative, the investment is sold immediately, freeing up capital for other investments offering better upside potential.

CLICK HERE
Equity Investment Process (PDF)

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