International Equity Strategy

Philosophy

International economies generate approximately 85% of global economic output and it is our observation that successful companies display key similarities regardless of their country of domicile. MCM’s International Equity Strategy seeks to invest in future foreign market leaders as well as established companies that are attractively valued.

Process

The International strategy provides a more thorough diversification by owning companies that are domiciled outside of the United States. We apply the same rigorous criteria used in our US- based strategies to identify market leading companies that are better positioned than their US rivals. We look to invest in geopolitically stable countries with advanced accounting rules and a strong history of corporate governance. The International Equity Strategy employs a combination of global macroeconomic analysis and bottom-up stock selection. We start with a universe of several thousand companies that trade in the US equity markets either through direct listings or American Depositary Receipts (ADRs). This list is sorted down to a manageable number of investment alternatives through a rigorous series of proprietary quantitative screens that include earnings growth, cash flow, leverage and relative valuation metrics. The International strategy has a mix of both growth and value-oriented investments representing numerous countries across North America, Europe, Asia, Africa, Oceania, Latin America and South America. Most candidates will be larger than $500 million in market capitalization.

We invest in all market cap sizes as this allows us to take advantage of inefficiencies across the
full market. Given our high convictions, we typically run a concentrated portfolio that is more
heavily weighted to those companies identified as having larger upside.

We complement our intensive use of fundamental analysis by implementing technical analysis to
optimize our entry and exit points. Because market conditions are constantly changing and
companies will fall in and out of favor, we monitor holdings on a daily basis in effort to preempt
any weakness in the portfolio.

Team

Jonn Wullschleger, CFA

Rob Day

Miles Green, CFA

Grant LacKamp, CAIA

Other Equity Strategies

Fixed Income Strategies

International Equity Strategy: September 30, 2023

Top Ten Holdings

PositionAllocation %
UBS GROUP AG-REG6.2
AON PLC-CLASS A5.2
ON HOLDING AG-CLASS A5.1
SHELL PLC-ADR5.0
NOVO-NORDISK A/S-SPONS ADR4.8
LINDE PLC4.7
ICON PLC4.6
ACCENTURE PLC-CL A4.4
SCHNEIDER ELECT SE-UNSP ADR4.2
BHP GROUP LTD-SPON ADR4.2

‏‏‎The information above is intended solely to provide insight into how the manager analyzes securities, and are not a recommendation for any particular security or strategy. There is no assurance securities will remain in the portfolio or that they were or will be profitable. This is a list of top ten holdings based on a percent of the total and is not a full list of securities.

Strategy Characteristics

CharacteristicPortfolio
Forward Price to Earnings (IP/E) Ratio16.8x
Free Cash Flow Yield0.9%
Net Debt to EBITDA0.5x
Median Market Cap ($Billion)69.4

Sector Weightings

SectorPortfolio %
Financials17.2
Consumer Discretionary16.5
Information Technology14.9
Health Care12.7
Industrials12.1
Materials9.1
Energy8.3
Cash5.5
Consumer Staples3.2
Communication Services0.2
Utilities0.1
Real Estate0.1

About Mitchell Capital Management

Mitchell Capital Management (MCM) was founded in 1987 and is an SEC Registered Investment Advisor. The firm manages portfolios and provides investment solutions for an array of investors nationwide, including individuals, foundations, union pension plans, retirement plans, endowments and associations. MCM has always been employee owned and intends to stay that way. Our fiduciary culture means our clients are the first priority in each decision we make.

Disclosure: https://mitchcap1.wpengine.com/disclosure/