Equity
Philosophy
We believe that owning a diversified portfolio of high quality stocks, trading at reasonable valuations, purchased at time when the market is recognizing these characteristics is the key to generating long term excess returns.
Process
Our investment process places an emphasis on stock selection and portfolio construction, and is singularly focused on maintaining a specific portfolio profile. Miles Capital’s equity team concurrently performs analysis on new investment ideas as well as portfolio holdings, and buys and sells stocks based on a proprietary relative ranking process.
The investment team performs an initial sector-by-sector analysis on both qualitative and quantitative factors in order to assign a multi-factor score to each stock in the universe. This step combines fundamental ratios analysis with our unique application of price relative strength. This results in a process that is systematic and efficient.
Through in-depth fundamental research, we develop a unique investment thesis for the top five ranking stocks in each sector. Based on this analysis, the top two sector ideas are added to the Focus List. Portfolio holdings and stocks on the Focus List are continuously monitored, and their multi-factor scores are updated weekly.
The portfolio management team recommends swaps between stocks on the Focus List and lower ranking portfolio holdings. Portfolio holdings are sold for four reasons: holding exceeds 3% of portfolio weight, deterioration in multi-factor score, deterioration in investment thesis, and price decline greater than 25% versus its sector.
Our approach to investing is well defined and repeatable. It has evolved with the market, combining traditional fundamental drivers with Miles Capital’s unique application of price relative strength. It incorporates factors that account for the growing number non-fundamental market influences and has demonstrated positive results in both up and down markets.
Income Focused
All-Cap Equity Income
The Miles Capital All-Cap Equity Income Strategy seeks a high level of current income through investment in the equity markets. The strategy invests in companies with a history of growing their dividends, strong fundamentals, and potential catalysts for growth. This portfolio invests in 40 to 50 stocks diversified by sector, market capitalization, and county exposure.
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Large Cap
Large-Cap Growth
Large-Cap Growth portfolios are managed to provide long-term capital appreciation from large capitalization growth stocks. This strategy invests in industry leaders – companies with improving operating cash flows, more efficient asset utilization, and economic value adding strategies. This portfolio invests in approximately 50 stocks and utilizes a risk budgeting methodology in portfolio construction.
Large-Cap Diversified
Large-Cap Diversified portfolios are managed to provide long-term capital appreciation from large capitalization stocks. This strategy invests in companies with improving operating cash flows, growing revenue, and high returns on investment. This portfolio invests in approximately 60 stocks and utilizes a risk budgeting methodology in portfolio construction.
Small Cap
Small-Cap Core
Small-Cap Core equity portfolios are managed to provide long-term capital appreciation from small cap stocks. This strategy invests in companies with discounted valuations while having identifiable catalysts that generate economic value for shareholders. This portfolio invests in 50 to 60 growth and value stocks with market capitalization ranges from $250 million to $2.5 billion.