GLOBAL INVESTMENT EXPERTISE

Global approach

Rigorous fundamental research

Innovative risk management systems

Trade optimization

Our Four

Pillars



"Our four pillars are quantitative tools that we have developed to aid and complement the analysis, selection and trading of our investments. These proprietary tools are used in conjunction with our bottom-up fundamental research and overall macro outlook."


Randall Abramson, CFA
CEO, Portfolio Manager


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I. Value Philosophy

Our most important pillar is our value investment philosophy. A value strategy offers two advantages. First, a stock purchased below our estimate of intrinsic or fair market value offers the potential for outperformance as the stock ascends to fair value. Second, we believe that stocks trading below their fair value offer a “margin of safety”; that is, downside risk is mitigated because these stocks are detached from their fair value.

II. Trade Optimization

Our proprietary security trading model, TRACTM, is used to gauge changing sentiment for individual stocks, sectors or overall markets. TRACTM helps to optimize the timing of our stock purchases and sales. We aim to buy stocks when they fall to TRACTM floors and to sell them when they hit ceilings or fall through floors.

III. Economic Risk / IV. Market Risk

Our two macro pillars are designed to manage risk. We monitor global economies and markets to alert us to potential economic downturns or severe market declines. Our Economic Composite evaluates economic activity by combining various economic variables into one composite to capture business cycle peaks. The Relative Indicator of Momentum model (TRIMTM) is an algorithm that combines momentum and volatility to determine the primary trend of the market. When the economy hits a business cycle peak according to our Economic Composite or stock markets fall below their TRIMTM line, we may raise cash, alter portfolio holdings, and hedge our portfolios by short selling markets/sectors.

Global Approach

More Opportunities

Canada and the US make up only 55% of global market capitalization.

Diversification

No single country has been the top performer two years in a row. Single countries can underperform for many years, like Japan between 1988 to 2014 or Canada over the last five years.

GPMC’s research systems are designed to uncover potential opportunities from around the world.

Don Carlisle, MBA, CFA
Portfolio Manager

Research &

Innovation



"A rigorous research process, global approach, and innovative risk management system. That’s a powerful combination."


RJ Steinhoff, CFA
Director of Research


CUSTOM TOOLS & SOFTWARE

Built from the ground up, our custom software aggregates data from multiple data providers.


PROPRIETARY VALUATION ALGORITHMS

We rank our Global investment universe using several valuation methodologies, including our proprietary and systematic discounted cash flow model.


PROPRIETARY TRADE OPTIMIZATION MODELS

Trade optimization models are used in an attempt to capture—in real time—changing sentiment for individual stocks, sectors or overall markets.


REAL-TIME GLOBAL RISK MONITORING

Economic and market risks are monitored via our innovative risk management models.

Risk Management

Economic Modelling

We developed an Economic Composite to monitor the business cycle. Monitoring the business cycle is of paramount importance. Since 1965, two-year rolling losses of 20% or more have always been preceded by a business cycle peak. Equity markets tend to be more volatile following business cycle peaks than during periods of economic expansion.

Market Risk Analysis

Market drawdowns can occur outside the natural ebb and flow of the business cycle. The Relative Indicator of Momentum (TRIMTM) is an algorithm we have developed that combines market volatility and momentum to model transition points that forewarn of a potential shift from a bull market to a bear market (a market decline greater than 20%). We use TRIMTM to monitor numerous global markets and commodities.

Portfolio Construction

We may employ short positions, option positions, or other strategies, for risk management, in an effort to reduce volatility, lower drawdowns, moderate correlation to the overall market, or opportunistically to increase returns.