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Equity Investment Process
A Dynamic Equity Framework
NCM Capital constructs equity portfolios reflecting the firm's
best thinking. Stocks that pass through our quantitative screens
are further measured against a wide range of fundamental criteria.
Fundamental analysis is performed on approximately 200 companies.
We assign a fair market value to each security
and prepare a written report for the Equity Roundtable, a weekly
meeting of all investment professionals. This process results
in a Buy List of approximately 100 stocks (70-80 stocks
for mid-cap portfolios) from which portfolios are constructed.
The sell discipline may be offensive, for profit-taking, or defensive,
for portfolio protection.
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1000 LARGEST COMPANIES
Screen for capitalization and quality review
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APPLIED STOCK UNIVERSE
Conduct diverse earnings and valuation
screens
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FUNDAMENTAL UNIVERSE
Perform fundamental analysis and define
price target
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BUY LIST
Apply total portfolio perspective based
on
best-fit ideas, sector/industry weightings
and style criteria
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DRAFT POOL
Apply risk controls (sector constraints:
max. 2.0x, min. 0.5x index; industry
and security constraints)
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PORTFOLIO
Construct portfolio consistent with
client guidelines
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MONITOR PORTFOLIO
Implement sell discipline: offensive
(profit-taking) or defensive (downside protection)
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