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 favoring a broad spectrum of ideas, 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.