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Contact Us
Tel (713) 952.3550 Fax (713) 952.4175 |
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TRADITIONAL EQUITY INVESTMENT PROCESS |
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U.S., International and Global Strategies
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 domestic and international equity portfolios and is designed
to provide our team with a global perspective.
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. |
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PHILOSOPHY |
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Eagle's investment philosophy is centered on a belief that emphasizing
large capitalization companies that produce superior earnings growth
offers the best combination of high return potential with lower
associated risk.
Eagle strives to invest in companies that generate consistent earnings, cash
flows and returns on equity as well as those with strong management
teams that reward patient investors with above average market returns
while limiting risk over the long term.
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Large Cap Securities-
$2 Billion to greater than $10 Billion |
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Industry leaders that possess
sustainable competitive
advantages |
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Growth-oriented businesses
trading at attractive valuations
(GARP) |
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Allocations driven primarily by
stock selection |
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Low turnover-25% to 30% per year |
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| Research |
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Eagle's disciplined process incorporates both top down and bottom up
elements and is designed to identify companies with improving growth
prospects that have not been incorporated into current valuations. |
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Quantitative multi factor models are used to provide top down
directional guidance towards areas with improving prospects and away
from areas with deteriorating prospects.
The cornerstone of this process is a proprietary multi factor security
ranking model that is used to identify companies that warrant further
in depth financial and qualitative review.
Fundamental work includes a qualitative analysis of a company’s
competitive strengths, weaknesses and industry positioning as well as
an assessment of management’s strategy and integrity.
A rigorous analysis of company financials is performed with an emphasis
on measuring quality of earnings, balance sheet strength, cash flow and
cost of capital. |
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Top-Down Analysis
15% to 20% |
Bottom-Up Research
80% to 85% |
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| Multi Factor Modeling |
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portfolio construction, the investible universe is narrowed to meet our
capitalization, liquidity, analyst coverage and competitive position
requirements. The universe is then ranked monthly using a proprietary
multi factor model that incorporates growth, valuation, price momentum,
and earnings revision metrics. The output is combined with top-down
analysis to identify candidates that warrant further in depth financial
and qualitative review. Fundamental analysis is performed to assess the
quality of company managements, financials, competitive position,
valuation, return potential, and their plans to maintain competitive
advantages and increase shareholder value. |
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Designed to highlight securities with improving prospects that are not reflected in current
valuations |
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Incorporates both growth and value metrics |
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Not a "black box" or optimizer but a directional tool used to identify opportunities that warrant further due diligence |
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Provides an unemotional check for current holdings and is a critical component of sell discipline |
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Input data collected from a variety of third party services |
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Output back tested periodically to ensure quality |
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Investment Committee |
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The
firm's investment committees meet on a monthly basis - and informally
as needed - to review portfolio performance, discuss ongoing 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 voting members having an equal vote and no
veto power. |
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| Earning Revisions Model 30% |
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| Growth Factors 15% |
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| Price Momentum 25% |
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| Value Factors 30% |
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COMPOSITE
SCORE |
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