Strategy Overview

AZA’s Global Equity strategy is a technically-driven, stock-based approach that seeks representation in the strongest areas of the U.S., International, and Emerging markets. This strategy provides our clients with a more concentrated approach to global investing.

We believe that markets and individual securities become over-extended or under-valued based on inflated expectations, misinformation, hyperbole and fear or greed. Diversified portfolios of fundamentally sound stocks can out-perform peers when selected at favorable times in a market cycle.

Portfolio Construction

This strategy typically includes 35-60 individual securities selected for their sound fundamental underpinnings and near-term appreciation potential. The selected stocks will not be restricted by company size (capitalization), although the portfolios will tend toward mid- and large-cap global securities. The portfolio may include ETF’s on occasion, to safely gain access to less liquid areas of the global market (e.g., emerging markets).

The portfolio will have a broad exposure across various sectors, countries, and industries and will tend to approximate similar weightings to the S&P 1200 Global Index. Based on our proprietary analysis, certain segments of the global market may be over-weighted at various times to capture identified strengths. Additionally, we may avoid certain industry groups or countries if our analysis identifies sector weakness.

Implementation

Our Global Equity Strategy is a “bottom-up” approach, where potential companies are tracked through a proprietary model that uses both fundamental and technical indicators. The strategy seeks to capitalize on companies that are undervalued or provide growth at reasonable valuations. Additionally, technical analysis helps refine the timing of entering and exiting positions, and provides a “circuit-breaker” to mitigate downside risk.

The strategy’s macroeconomic indicators include credit spreads, manufacturing data, retail sales, employment data, as well as monetary indicators such as inflation and money supply. Fundamental economic analysis is employed at the macro and individual security level.