Investment Process

The U.S. equity team’s approach is highly disciplined, particularly as it relates to anticipating change. Following a growth style of investing, we believe that a company’s stock will react positively to growth in earnings and cash flow.

Our team applies quantitative and qualitative methods to manage a portfolio that focuses on growth. Our growth orientation is one of our distinguishing features. It has been a part of our investment style since we first began managing U.S. assets during the firm’s first year in business.

Quantitatively, we screen a 2,000 company universe to rank the most-attractive companies by EPS growth, earnings surprise, price momentum and relative P/E. From the top 10% of this screened universe, our professionals qualitatively assess the companies, tempering the available financial and consensus data with their own resources and experienced insight.

All decisions are made internally by the team.

Greystone’s proprietary procedures and analysis also influence our industry mix and strategic themes, by making them more bottom-up. Through modeling, we examine the stock’s and its sector’s contribution to overall portfolio risk. In this manner, we create a portfolio with a sector and security mix that offers optimal risk-reward characteristics.

We sell in much the same way: by identifying companies whose underlying characteristics or growth prospects no longer meet our criteria.

U.S. team members have sector and generalist research responsibilities. They rely on external sources for analytical data and primary research, but know their companies qualitatively through contact with investment analysts, industry conferences, annual reports and management interviews.

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