This opportunity is an actively-managed, long-only separately managed account (SMA).

The strategy employs a bottom-up, algorithm-based screen combined with a fundamental analysis and forensic accounting review:

  1. Proprietary quantitative GARP (Growth at Reasonable Price) model identifies 50-100 attractively valued opportunities from over 3,000 US-listed equities
  2. These 50-100 names are qualitatively analyzed through fundamental analysis focused on growth prospects, market position, product pipeline, competitive landscape, and valuation, eliminating the “least best” names.       
  3. The remaining names are put through a forensic accounting review which removes stocks identified as having higher risk of accounting manipulation and/or insider behavior concerns.
  4. The final portfolio consists of 25-35 names. Sector and industry concentration limits are targeted at 30% and 15% respectively, resulting in strategic diversification.
  5. Sell strategy is determined by changes in quantitative model output and/or earnings quality and fundamental concerns.
  6. New positions are purchased at an equal weight based on an average portfolio of 30 positions (3.33%). Relative position sizes are monitored and rebalanced as deemed appropriate over time.


 

Sabrient was founded by a former NASA engineer who worked on the lunar landing project back in NASA’s heyday, designing the landing gear. He also earned an MBA and later moved into the investment world, applying his techniques in building multifactor quantitative models. He surrounded himself with a variety of talented people who also had engineering backgrounds with MBAs or other financial/economics training, including a former civil/ structural engineer from Chevron, an electrical engineer with a PhD in economics, an economist with a PhD in electrical engineering, a mechanical/aerospace engineer from SAIC, programmers and computer scientists. 
 
Later, the company acquired a team of forensic accounting specialists, with advanced training in the analysis of earnings quality and insider behavior. Because Sabrient’s models rely on historical trends and forward projections of earnings, we felt it was important to have a team of experts in-house who are skilled at critical examination of financial statements and accounting practices. After all, reducing the risk of losers can be an effective way to boost portfolio performance. 
  • Minimum account size is $5 mm per client; no liquidity gate or lock-up period
  • Strategy can be tailored to accommodate investor's tax situation
  • Dividend payments are held in cash until a new position is purchased; not reinvested in original security

David Brown: Sabrient Founder & Chief Market Strategist

Scott Martindale: Sabrient President 

Brent Miller, CFA: Sr. Portfolio Analyst

Byron Macleod, CFA: Sr. Portfolio Analyst

For additional information and meeting scheduling:

Scott Martindale
SMartindale@sabrient.com
(805) 730-7594

www.sabrientsystems.com

Sabrient is an independent research and investment management firm registered with the U.S. Securities and Exchange Commission and located in Santa Barbara, CA.