Suffolk Capital believes that the revaluation of a company’s stock price can be predicted by analyzing changes in short term fundamentals.

We look for mispriced stocks with the potential for earnings revisions and other factors.

By limiting the portfolio to equal weighting, we avoid overdependence on a few stellar stocks and aim to consistently outperform the appropriate index over both the short and longer term.

Process

The three-step stock selection process at SCM is quantitatively-driven, but has a substantial reliance on fundamental analysis.  

• The first step in the process is our proprietary Valuation Model, which produces a subset of stocks that are “cheap” relative to their growth prospects.
• Second, analysts utilize our proprietary Earnings Revision Model to interpret Wall Street  revisions and separate out those that are impactful.
• Finally, SCM analysts perform Fundamental Analysis of companies, challenging the assumptions underlying their expected growth rates. 

Overlaying the second and third steps is our proprietary model called “Q-Squared,” which serves to quantify qualitative short-term and long-term fundamentals, as well as investor sentiment.