We seek long-term growth of capital by investing in securities of financially strong companies worldwide, including the United States.
We believe that the market does not always reflect the true value of a security and that certain stocks whose price-to-cash earnings ratios are low relative to their long-term growth rates can produce superior investment returns over time.
The investment decision-making process is a disciplined, research-driven, bottom-up, process which leverages the network of GE resources. The process begins by screening the global equity universe for companies with a market capitalization greater than US$1.5 billion. The team then filters down that list to focus on those companies that meet our initial price/cash earnings ratios, growth and yield screen (IBES estimates), have sufficient liquidity (both in free float and trading volume), and based on attractive investment themes. The list of companies is narrowed down further by conducting in-depth fundamental company analysis-using both valuation and qualitative analysis. Our analysts seek a catalyst for change in each stock that will unlock the future potential of the company. Final portfolio construction is driven by our level of conviction in each stock based on thorough discussions among the portfolio managers and on overall risk assessment.
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