New Economy. Old School Effort.
While human progress is making life easier and more comfortable for many in the world, that is alas not the case for Guinness Atkinson staff.
Whether we’re choosing companies for their innovation, energy technology, dividends or participation in Asia’s transformation, our fund managers rely on a traditional, rigorous and disciplined methodology – all facets of which are tackled in house by our own analysts and researchers.
Every buy or sell decision begins with a systematic study of short- and long-term stock performance:
Quality – as measured by return on investment
Value – as measured on a discounted cash flow basis
Earnings Trends – analyzed over the short term to gauge changes in market attitude about a company’s prospects
Price Momentum – measuring relative market performance over 3, 6 and 12 months
This process narrows the field and defines the candidates for additional due diligence.
Once a company passes the initial analysis test, we dig deeper. We interview key management and ask pointed questions about the company’s operations. We build profit and loss models, balance sheets and cash flow statements, when appropriate. We look at revenues, costs, capital expenditures and financing. We believe this extra research allows us to see value that the market may not have yet recognized.
A High-level View
Finally, we look at the market, and seek to understand what value and risk the market may assign to each particular stock, sector and geographic area.
With this groundwork in place, we’re confident that the companies we select have the potential to outperform their peers. Company by company, we build a portfolio of equities that we understand from the bottom-up and top-down.