Global Equities Investment Process
The Copper Rock Global Equities investment approach uses a blend of quantitative and fundamental analyses to identify companies with superior growth rates relative to their peers that will lead to consistent levels of outperformance. The strategy typically looks for resilient and defensible business models that are characterized by underlying unit growth, longer term market share gains (an evidence of competitive strength), high profitability, and significant internal cash generation.
The Copper Rock Global Equities investment process integrates simultaneous inputs from our proprietary quantitative model, fundamental factors including our detailed company analysis, and findings from our constant flow of visits with company management. The team looks for the following fundamental metrics during the stock selection process:
- Is the company gaining market share and is it in an industry with high barriers to entry?
- Is the company benefiting from accelerated cash flows and incremental operating margins?
- Is the company attractively priced relative to its peer group within the sector and/or region?
- Does the company have stable, internally generated cash flow to supplement growth organically?
- Does the company have a quality and proven management team?
Distinguishing elements of the Global Equities investment process are also the application of a routinely practiced and proven sell discipline and Alert List that serve as effective forms of risk control throughout the investment process and are critical in preserving alpha earned in the process.