We believe consistent out-performance can be generated when sophisticated portfolio construction is coupled with a disciplined stock selection process. We believe this strategy should include four primary components:
Robust Processes and Disciplined Implementation
To implement a process which includes each of these four elements, we developed an approach that focuses on adding value starting with sophisticated quantitative modeling to identify an "advantaged pool" of stocks-a pool of companies with attractive business characteristics that make them more likely to be good stocks to own. We then apply detailed fundamental analysis tools to these stocks to decide if they have the potential to exceed the investor expectations reflected in their current prices. Our fundamental analysis is highly disciplined, focusing on key attributes to identify why to own each stock in terms of growth, quality and an appropriate level of valuation.
Comprehensive Risk Management Tools
We use sophisticated risk management techniques throughout the portfolio construction process in order to identify and avoid unintended risks. Finally, our systematic implementation means we monitor and measure our portfolios comprehensively to help provide consistency and repeatability.
Consistency of Results a Primary Goal
Our disciplined, multi-step process provides our clients with portfolios
constructed to invest in solid, high quality growth equities. Our process is used in managing small, mid, and large capitalization portfolios. Consistency of both style and capitalization exposure is a hallmark of our approach.
Scott R. Ayres is a Vice President at The Northern Trust Company, Chicago. He is a Senior Product Manager within the asset management arm of Northern Trust.
Scott rejoined Northern Trust in 2003. He previously was Director of Institutional Investments at Banc of America Capital Management in Charlotte, North Carolina from 2000 to 2002. Prior to that, he was a Senior Product Manager at Northern Trust from 1994 to 2000. Other positions included Director of Institutional Marketing and Client Services at Signet Asset Management in Richmond, Virginia from 1990 to 1994 and Vice President of Institutional Sales for Wilmington Trust Company in Wilmington, Delaware from 1987 to 1990.
Scott received a B.A. degree in Economics from Washington College in Maryland.