Research at Genus
Our Hallmark & Foundation
Our independent insights and advanced research capabilities are two of our distinctive strengths, providing unmatched intelligence for developing successful investment strategies. The backbone of our process is our proprietary research platform, ETHOS, which we built and refined over 15 years.
Research Philosophy
We believe that investment returns over the long term are determined by superior company fundamentals, and that our own analysis of these factors forms the foundation of our equity investment strategies.
Measure of Success
In building portfolios, we seek to add value from stock selection. In the past 10 years over 85% of our added value has been attributed to our stock selection models.
Distinctive Strength
Our investment team, investment technology team and a significant investment in ETHOS are the cornerstones of our research process.
Decision-making and security selection is based primarily on our own research. Street sources account for about 20% of our research effort and relate primarily to earnings announcements and earnings expectations.
We acquire data from independent data vendors who are not associated with banks or brokerage firms that may have conflicting interests. This gives our research process objectivity.
Research Capabilities
ETHOS is the primary tool we use to separate buys from sells and build the stock selection models that are at the heart of our investment process.
ETHOS enables us to:
► Test theses and search for combinations of financial data which act to identify sources of stock outperformance
► Refine and test investment strategies, manage exposure to a wide variety of risks, and enhance our investment products
► Rigorously analyze financial ratios, and build and refine security valuation models
► Rank stocks based on expected excess return, or alpha
ETHOS holds information ranging from company financial statements, market prices, earnings forecasts, broker recommendations, actual and forecasted macroeconomic data, liquidity and funds flow data, internal portfolio holdings, numerous aggregations and derivations of country, sector, and industry information, and more. All of the information and data is on a global, historical, and on-going basis, with data on more than 20,000 companies across 74 countries.
Our ongoing work enables us to understand which factors are most effective within individual sector and style categories as the markets evolve. We regularly evaluate new factors, review and test the performance of our models and make adjustments as necessary.
Contact Us
Learn more about our research capabilities and how we can work with you to further your goals. Call 604-683-4554 or email info@genuscap.com.
GENUS FACTOR FOCUS
DIVIDENDS & MOMENTUM OUTPERFORM AS QUALITY FADES
Price Momentum, Earnings Momentum and Valuation, led by Dividendswere strong across the board in June. Quality suffered as investors showed a preference for stocks with the potential for upside surprises.
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