DM Equity Investment Process

Dixon Mitchell’s equity approach follows a disciplined three-step process, comprising quantitative screening, qualitative scoring, and fundamental analysis.
  • Quantitative
  • Qualitative
  • Fundamental

1. Quantitative Screening – each day, our proprietary screen appraises more than 2500 stocks in search of names meeting our requirements for valuation, profitability, and balance sheet strength.

2. Qualitative Scoring – once a candidate stock is identified through our quantitative process, it is evaluated on a qualitative basis, with attributes such as management strength, barriers to entry, and industry outlook assessed and graded.

3. Fundamental Analysis – all DM candidate stocks undergo detailed financial statement analysis and scenario modeling, with a risk/reward ratio established for each position.

Monitoring & Review – DM equity portfolios are continuously re-screened through our quantitative filters to ensure that valuation and profitability measures remain attractive. Changes to qualitative attributes are also monitored, while fundamental models are updated quarterly or as conditions warrant.

Sell Discipline – stocks are eliminated from equity portfolios if any of their quantitative, qualitative, or fundamental attributes deteriorate beyond DM’s internal tolerance levels. Position weights may be altered either to restore DM’s target portfolio balance or to reflect differences in relative valuation between individual securities.