Global Equity Strategy 2020-06-23T14:58:22-05:00

Global Equity Strategy

Philosophy

MCM’s Global Equity investment process focuses on identifying high quality companies with earnings growth potential. These companies are headquartered around the world in developed and emerging economies. Through our proprietary quantitative screening, fundamental research and traditional valuation techniques, we seek total returns primarily through capital appreciation and secondarily through dividend payments.

Objective

The strategy seeks long-term capital appreciation by owning equity securities and ETF’s of domestic and international companies. Our style is designed to meet a variety of investment objectives as we seek to provide consistent growth of principal and moderate dividend income.

Strategy

The Global Equity Strategy is our own unique blend of incorporating top-down macroeconomic analysis with bottom-up stock selection. Under the top-down viewpoint, we evaluate the current economic environment, monetary and fiscal policies, and secular trends to identify the sectors or industries that are most likely to outperform the market. We start with a universe of several thousand companies and exchange-traded funds, sorting this list down to a manageable number of investment alternatives through a rigorous series of proprietary quantitative screens that include earnings growth, cash flow and financial condition. We are open to all market capitalizations, but most candidates will be larger than $500 million. After this screening, companies undergo a thorough analysis focusing on qualitative factors such as growth potential, market position, proprietary advantages, management capabilities and insider ownership before investing.

Team

Jonn Wullschleger, CFA – PM, Principal with Mitchell Capital since 2000, analyzing equities since 1991

Rich Jones – PM, Principal with Mitchell Capital since 1995, analyzing equities since 1978

Brandon Reed, CFA – PM with Mitchell Capital since 2016, analyzing equities since 2014

What sets this strategy apart?

Long-term management team with ownership in the firm and investments in the strategy

Commitment to established and successful process

Flexibility allowing for responsiveness to changes in economic environment

Global Equity Strategy: March 31, 2020

Strategy Characteristics

CharacteristicPortfolio
Dividend Yield1.5%
Free Cash Flow Yield4.2%
Debt / Equity0.7x
Forward Price / Earnings18.7x
Price / Earnings Growth1.3x

Top Ten Holdings

Position – U.S.Position – Intl
Amazon.com Inc.AON Plx
Microsoft Inc.Accenture Plc
Apple Inc.Astrazeneca plc
Alphabet Inc. Cl CNice Ltd.
Thermo-Fisher ScientificElbit Systems Ltd.
JPMorgan ChaseDiageo Plc
Berkshire Hathaway IncAdidas AG
Danaher Corp.Open Text Corp.
Walmart Corp.Kao Corp.
PepsicoAlibaba Group

Sector Weightings

SectorPortfolio %
Consumer Discretionary12.0
Consumer Staples7.3
Energy2.1
Financials10.3
Health Care16.4
Industrials6.2
Informational Technology30.2
Materials0.8
Real Estate0.0
Communication Services10.8
Utilities1.2
Cash2.7

Capitalization Profile

Portfolio %
Giant47
Large38
Mid10
Small5
Median market cap$79.5B

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.

Disclaimer: https://mitchcap.com/disclosure/

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