Investment Style

Broad Global Trend Analysis

 

Our top-down approach is rooted in the belief that the analysis of various global trends is vital when allocating funds to financial assets. Thus, we begin with a broad analysis of global macroeconomic, political, and technological trends, with our objective being to ascertain how these trends will impact the financial markets.

Industry Analysis

 

It is only after answering these broad questions that we begin our industry analysis. Our top-down approach leads us to emphasize those sectors that we feel have the most potential in terms of growing their revenues and earnings not only in the U.S., but in virtually every region in the world. Particular emphasis is given to those industries and companies that have a strategic and international business plan that focuses on those countries that display economic vibrancy, including currency stability, rising real incomes, and improving living standards.

Company Analysis

 

While certainly not the least important, examining the individual company is the last component of our analysis. We use a variety of proprietary valuation techniques to assess whether a company warrants investment consideration.  With this type of approach, we are both growth and value managers. Rigid analysis of economic, political, and technological trends leads us to the industries that we feel have the most growth potential. We then look for companies that we think represent the best value within those industries. This means that we are going to be overweighted in certain industries and underweighted in others. In many instances, clients rely on Bowen, Hanes to manage their funds in a balanced fashion to include both stocks and bonds. When employing such an approach, equities are relied upon for capital appreciation while fixed income securities are used for stability and income.
 

Fixed Income

The strategy for fixed income places a major emphasis on the following:

  • Interest Rate Anticipation - Commitments to securities are made when value is perceived from both a price and yield standpoint.

  • Preservation of Capital - Quality and safety are of paramount importance when selecting bonds. Thus, we emphasize investment grade securities when making commitments.

  • Buy and Hold Strategy - The objective is to provide both income and stability as opposed to seeking a total return through aggressive trading.

investment process — top down

thematic • core • opportunistic

global trend analysis

macro economic issues

technology

political issues

demographic variables

trends

industry selection

financial & management integrity

growth rates

earnings productivity

company selection

3u's

peer valuation

proprietary valuation formulas

sell discipline

Securities will be sold when fundamental reasons for purchase no longer exist, a security becomes over weighted, or to make room for a newly uncovered, compelling investment opportunity.

objective

Uncover high-quality companies that demonstrate the ability to produce superior long term returns with below-average risk.

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Suite 880,
Atlanta, GA 30327

(404) 995-0507

dlk3@bowenhanes.com

© 2020 Bowen, Hanes & Co., Inc.