Portfolio Management

We believe we can add value over the long run using a disciplined portfolio management process that is supported by systematic research methods.

Our portfolio management philosophy is built on the foundation of systematic investment management. We believe in the benefits that discipline, objectivity and consistency bring to the portfolio management process and to our ability to generate returns for our clients.

18 AM’s portfolio management process is based on the following key cornerstones:

  • The foundation of portfolio decisions is our focus on a stock’s fundamentals. The key performance drivers of a stock are its balance sheet and income statement qualities, and its risk characteristics. Fundamentals matter.
  • With so many stocks to choose from, a systematic approach gives us the ability to gather the fundamentals, assess them and objectively determine the attractiveness of stocks versus each other.
  • Human judgement matters. A systematic approach needs to be complemented with “human touch” while still maintaining the discipline of the approach.
  • Risk management is critical and must be applied at every step of the investment process. We manage risk through the use of sell disciplines, style diversification and style allocation.