Proprietary Macro Approach
Anchor's equity strategy identifies the five most important top-down factors that impact investment performance. The process begins with unique macro-economic models that identify global trends. The research team then identifies economic sector and specific industry rotation. They also determine whether political changes are hindering or helping the free market process. Finally the research team establishes whether there are any external environmental factors influencing their investment decision, such as accounting transparency and market liquidity.
Advanced Quantitative Disciplines
Stocks are ranked based on quantitative models to fully investigate their fundamental value. Anchor managers use a combination of absolute and relative valuation models, earnings quality analysis, dividend discount, discounted cash flow, insider activity, institutional money flow and market rotation models.
Portfolio SelectionStock Selection
Portfolio Selection and CompositionThe portfolio managers work with the research team to select top-rated securities that both meet the client's asset allocation requirement and risk profile. Stocks are constantly ranked based on a decile ranking system through the Anchor quantitative models.
Risk Management and Alpha/Beta Analysis are conducted to ensure that the portfolio is correctly constructed to produce optimized, risk-adjusted returns.
Reduced RiskThe portfolio managers seek to reduce the risk inherent in the equity holdings by diversifying based on Market Capitalization, Geographic, Sector, Industry and Individual Security concentration. Furthermore, they eliminate any restricted investments from the security holdings.
Once the portfolio is constructed, the team constantly monitors and adjusts the holdings based on the diversification metrics and security ranking system.