• 1

  Screen Universe

  • Filter for ROE > 15% over 3 consecutive years;
  • Market cap > $1bn
  Establish universe
  ~ 900
• 2

  Prioritisation

  • Quality score applied
  • Measures profitability, growth and financial strength
  • Unbiased, disciplined, idea generation
  Idea generation
  ~ 450
• 3

  Qualitative

  Fundamental test:
  pass or fail

  • Management
  • Franchise Strength
  • Profitability
  • Financial Strength
  • Business Drivers
  Quality test
  ~ 250
• 4

  Valuation

  • Disconnection between quality & value
  • Identify mispriced stocks
  Valuation
  ~ 100
• 5

  Portfolio Construction

  • Modest turnover
  • No constraints, best ideas approach
  • Target consistent outcomes