International
Growth
Investment
Style/ Philosophy
Pinnacle's investment philosophy is focused on constructing a diversified portfolio that selects stocks that have the best combination of: a theme, fundamentals and valuation. The philosophy emphasizes companies
with superior growth potential. A company’s sales growth
must be due to a strong demand for its unique products/services,
thereby driving earnings growth. We focus on niche-oriented,
high-quality industry leaders. Studies have shown that industry
leaders tend to stay industry leaders. Our investment strategy
is to identify companies in the early stages of rapid growth
that are trading at attractive price-to-earnings multiples,
thereby maximizing upside potential while limiting downside
risk. In this way, our investments benefit two-fold from a)
growing earnings-per-share and b) an expanding P/E multiple.
Pinnacle’s International Growth strategy is a bottom-up
investment approach that is founded on fundamental analysis.
Given the complexities of international markets, a certain amount
of internal “top down” analysis is conducted. We
believe that it is necessary to consider certain macroeconomic
variables relative to their economic, political or governmental
impact on the holdings within our strategy. Pinnacle’s
international growth strategy does not structure portfolios
based on an index, however, performance is compared to the MSCI
EAFE Growth index. We add value relative to a passively managed
portfolio by investing in a number of companies based on their superior growth
prospects and earnings performance record. By contrast, stocks
in a passively managed portfolio are selected based on the size
of their market cap.
Investment Process
The structure
of Pinnacle’s international investment team is one in
which all members work together toward a common goal of superior
portfolio management. The team is composed of a small group
of decision makers. They review world markets on a daily basis
including sector trends and individual companies. This allows
each member to participate in the portfolio’s investment
strategy based on their assigned role. The process is designed
to collectively narrow the investment universe in order to focus
our efforts on the most attractive growth areas. Our portfolio
managers and analysts work together side-by-side, maximizing
the opportunities for new investment.
Investment decisions for this product are approved by Guru Baliga, CIO of International Investments.
Pinnacle’s
fundamental analysis effort utilizes a unique combination of
research sources in an effort to capitalize on the most meaningful
information while retaining flexibility and absolute control
of the investment process. Specifically, we use our own internal
research in conjunction with a worldwide research network that
we have established over the last 10+ years.
By combining internal and external research, we feel that we
have created the ideal environment to be successful in the complex
and ever-changing international markets. Our external relationships
provide us with extensive local knowledge and information.
Our portfolio team meets frequently throughout the day, and
reacts immediately to information as it arises, often times
before the information is absorbed by the marketplace.
Client
Communication
We encourage
client meetings as frequently as needed in order to build the
trust that is essential in any client-advisor relationship.
We generally have met with clients one or two times a year,
depending on the client’s needs. Also, conference calls,
written updates, etc., are important elements of our client
communication strategy.
Team
The International Growth Portfolio is managed by Guru Baliga, Gordon Sommer, David Dineen, Orton Chen and Marc Langefeld. |
