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Quick FactsInvestment Approach
Growth, bottom-up security selection
Benchmark
BMO Small Cap Blended Total Return Index (Weighted)
Capitalization
Small
Strategy Inception Date
December 31, 2002
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Investment Teams
Investment Philosophy
Acuity seeks reasonably priced growth securities, seeking long-term capital appreciation.
The Acuity investment management team:
- Seeks companies that they believe will demonstrate earnings growth that the market has not priced properly
- Strives to build a portfolio with growth characteristics meaningfully higher than the market itself
- Pays close attention to forward-looking valuation metrics to ensure they don't overpay
- Seeks companies with strong balance sheets and low leverage
Investment Process
Acuity employs a disciplined, bottom-up security selection process that focuses on companies with viable business models derived from sustainable competitive advantages and free cash flow. The science and business backgrounds of the team provide a crucial contribution to the depth of analysis. Subsequent financial analysis attempts to identify those companies that are attractively valued.
The valuation of securities is based on our assessment of underlying financial quality, balance sheet strength, profit margin trends, cash flow and earnings expectations as well as P/E and other ratios in relation to historic and expected growth. The individual security selection process is derived from idea generation efforts, a feature that distinguishes Acuity's approach to investment management. Idea generation efforts are focused on two areas: fundamental strength and free cash flow.
