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Investment Approach

Conviction Through Clarity

Since the firm’s inception in 1967, the cornerstone of our success has been our strong, independent internal research and disciplined investment process. Our focus is on absolute risk and downside protection, and our unwavering buy/sell process sets us apart from our competitors.

Equity Management

Our concentrated, high conviction equity management approach incorporates 5 key principles:

  • Our stock selection process is based on identifying securities trading at a significant discount to their business value.
  • Our investment process is based on the belief that risk is absolute and the avoidance of capital loss is the key to compound growth.
  • We believe that owning high-quality, undervalued companies and taking a long term view can deliver above average, risk-adjusted returns to clients through market cycles.
  • We eliminate the noise. Our sector and stock weights are outcomes of investment decisions based solely on bottom-up fundamentals and business quality, not top-down macro variables.
  • We recognize that things won’t always go as planned. For every stock in our portfolios, both a target price and downside limit are set.
A Disciplined Active Management Style with a Team Approach

Fixed Income Management

 

Our Fixed Income portfolios employ an empirically driven research process with quantitative evidence to validate macro decisions and mitigate risk.

We are always mindful of capital preservation and continuously challenge the herd consensus and search for opportunities where the market has mispriced risk and reward. Our independent thinking focuses on long term business cycles while employing tactical strategies periodically when superior risk adjusted rewards are apparent.

  • The macro portfolio positioning is determined by reviewing current market conditions; evaluating the economic environment; reviewing Central Banks movement; and assessing market expectations. Based on our assessment, we forecast:
    • Direction of interest rates
    • Curve positioning
    • Credit spreads
  • Scenario analysis is performed and stress-tested to determine optimal portfolio structure.
  • A key advantage to the Beutel Goodman portfolios is the strength and depth of our credit research.  We conduct rigorous independent research to identify high quality corporate bonds that meet our strict investment criteria. Our research process includes:
    • Proprietary Financial Models
    • Industry Analysis
    • Management Interviews
    • Strategy Critique
    • Credit Ratings
    • Environmental, Social and Governance (ESG) Review