Investment Process
At Quantum, we manage traditional long-only equity and hedged equity products with the following investment pillars:
- Fundamental, research-oriented stock selection
- Investment process and philosophy is disciplined, consistent and transparent
- Portfolios hold 35-50 high-quality stock positions with moderate turnover
- Superior long-term, risk-adjusted returns
- Downside protection
Quantum Capital utilizes unique metrics of fundamental analysis to construct and manage equity portfolios within a systematic and disciplined framework. For each equity discipline, the stock selection and portfolio management process remain identical. From our universe of stocks, specific subsets are chosen to construct portfolios for each discipline.
At the core of our investment philosophy, we leverage our internal research to identify companies with meaningful intrinsic value for our clients. This serves capital preservation objectives (downside protection) as well as capital growth and income (above-average returns on investment).
By purchasing a company selling below its estimated intrinsic value, we attain a higher degree of confidence in its wealth preservation characteristics during market downswings. Simultaneously, we look to identify companies that are earning economic profits above their cost of capital ensuring adequate capital appreciation during market advances.
Remaining true to our discipline enables us to manage with confidence through all markets; never losing sight of the fact that the stock market is a market of stocks, and that stocks represent shares in real businesses.