Overview & Approach
NorthPointe’s intrinsic value philosophy is rooted in the belief that the company’s actual value is based on our perception of the underlying business. That value may be different than the current market value. Our focus is on mispriced securities not necessarily “cheap stocks”. We believe you must first identify a company’s catalyst(s) before you can unlock the intrinsic value. Ultimately, our investors seek to develop unique insights into a company’s business which will help us uncover those catalysts. Our goal is to construct well diversified portfolios of companies with defendable business models, and management teams who allocate their capital in an economically sound manner.
Our micro and small cap portfolio strategies rely on fundamental analysis in what is the more inefficient part of the market. Traditional research techniques lead to a focus on higher conviction portfolios. Experience matters. Our team of stock pickers are intimately familiar with their assigned sectors and industries while our portfolio managers construct the portfolios inside a risk adjusted framework. As we move up the capitalization range to our large cap portfolio, we rely on our unique insights into which factors are most predictive of a company’s near term results. Equally important, we use our proprietary quantitative research to dynamically weight those factors which recognizes a shift in investor preference and possible regime changes.
Risk is managed across the entire suite of portfolio strategies. Our focus is on stock selection so we embrace stock specific risk. This focus on stock selection has resulted in well diversified portfolios over time. We reward exceptional stock selection skills which will insure a favorable client experience.