Eagle Global Advisors employs a disciplined, repeatable, and consistent investment process that combines traditional fundamental research with modern quantitative techniques. This process is used to manage both dedicated US and international equity portfolios and is designed to provide our team with a global perspective. For the large capitalization multi-national companies that we invest in, the competitive sphere is the world and their principal rivals are often located abroad. Therefore our international research informs our US research and vice versa. The process involves using both top-down country/sector analysis and bottom-up stock research. The cornerstone of this process is a series of proprietary multi-factor quantitative models that are used as tools to provide directional guidance, to screen potential investments and to monitor existing holdings.

The process begins with a top-down analysis of sectors and countries (international portfolios only). Using valuation, growth, risk, and momentum data inputs, multi-factor screens are performed to rank the relative attractiveness of countries and sectors. This data is combined with qualitative assessments of political and economic dynamics. The goal is to overweight cheaper countries/sectors with improving prospects and underweight expensive countries/sectors with deteriorating prospects. Approximately 15% to 20% of the investment team’s decisions are based on this element of the process.

80% to 85% of the Eagle Global process is focused on bottom-up security selection. A universe of approximately 600 US equities is ranked using a multi-factor model that incorporates growth, valuation, price momentum and earnings revision metrics. This output is used to identify candidates that warrant further in-depth financial and qualitative review. Fundamental analysis is performed to assess the quality of company managements and their plans to maintain competitive advantages and increase shareholder value.

The investment team meets on a monthly basis – and informally as needed – to review portfolio performance, discuss on-going research, and to hear buy and sell recommendations. All strategic and tactical portfolio decisions are made by committee. Decisions are made by a majority vote, with all committee members having an equal vote and no veto power.