Equity Philosophy and Process

Capital Advisors executes a core growth investment philosophy in the stock market. Portfolios are strategically diversified among approximately 35 large-cap and mid-cap growth stocks.

Our research process seeks independent judgments by filtering its inputs through three, non-conventional analytical perspectives:

• Time Horizon – We emphasize secular disruptions that unfold over a 3-to-5 year time horizon. Consensus opinion in the stock market typically focuses on a much shorter time frame.
• Valuation Process – Our valuation process places equal emphasis on measures of income, balance sheet structure and cash flow. Conventional practice, among growth stock investors in particular, places much greater emphasis on measures of income with less attention given to the assets and liabilities that produce that income.
• Stock Price Forecast – We seek to exploit a historical tendency for stock prices to overshoot to the upside and downside in reaction to short-term news flow.

BUY DISCIPLINE

GROWTH STOCK SEGMENTATION

SELL DISCIPLINE