Equity Investments
Disciplined Selection Process
How We Build Portfolios
Greenwood Capital’s equity investment process is based on a three-step approach that includes macroeconomic research, asset class and sector allocation, and stock selection:
Macroeconomic Research
8,000 Stocks
First, our Investment Committee identifies investment themes based on macroeconomic research and analysis. We analyze trends in interest rates, inflation, employment, taxes, gross domestic product, and global and domestic markets. Our objective is to identify stock sectors and industries we believe are likely to perform well in the long term
Asset Class &
Sector Allocation
We evaluate investment options and identify those poised for growth, likely to perform well, and offering the best risk-adjusted returns. We may buy more of certain stocks (or overweight) in a sector we like, relative to the percentage of stocks in a benchmark. Overweighting sectors with strong growth prospects and underweighting those without can help generate higher returns for you.
Stock Selection
40-85 Stocks
We look for companies in sectors we like that have strong fundamentals, improving earnings growth and profitability, reasonable valuation compared to their earnings potential, historical valuation, or industry peers, and the potential to increase market share or disrupt their industry. This results in a focused portfolio of 40-65 stock holdings.
Ongoing Monitoring
We continuously review and update our portfolios to ensure they align with changing market conditions.
Market Analysis
We monitor market trends and economic conditions and analyze their impact on different sectors and asset classes. We stay current on news and events that could affect the market and individual securities.
Portfolio Construction
Our investment team monitors individual securities and overall portfolio risk and adjusts as needed to ensure that your portfolio aligns with your risk tolerance and investment goals.
Periodic Rebalancing
We rebalance portfolios to maintain sector and security target asset allocation and risk level. We may sell securities that have become overvalued or overweight and then buy undervalued or underweight securities.
We first seek to identify investment themes based on macroeconomic research and analysis. We analyze trends in interest rates, inflation, employment, taxes, gross domestic product, and global and domestic markets.
Idea Generation
Greenwood Capital gets our bond ideas from a variety of qualitative sources and research, including the following:
- Market Analysis
- News & Media
- Company Reports
- Analyst Reports
- Management Discussions
- Professional Networks
- Personal Experience
Portfolio managers conduct extensive market research to identify stocks likely to perform well. We look at economic indicators, industry trends, and company-specific data to find opportunities for our clients.
and companies.
We draw on personal experience to identify investment opportunities. New example?
