SELL DISCIPLINE

The team sells a stock when the security exceeds its price target, the original investment thesis is broken, or a better investment idea is generated.  The investment team meets weekly to review a 10 point quantitative analysis that identifies stocks in the portfolio to consider selling.  The analysis looks at various price and fundamental-based factors, including earnings or revenue revisions, relative strength, price action relative to market, and the change in price compared to the stock’s 52-week high. This review is intended to reduce the impact of emotions on the sell or hold decision.  Any stock that has at least 5 of the 10 negative factors is subjected to a comprehensive review to determine whether or not the stock continues to meet the original investment criteria.  The challenge of the investment thesis continues for as long as the stock stays on the list.  In addition, stocks that have met their price objective are sold out of the portfolio on market strength.