International Equity Strategy
Philosophy
MCM’s International Equity Strategy investment process focuses on identifying high quality companies with earnings growth potential based outside the U.S. Through quantitative screenings, investigative research and valuation analysis, we seek returns through long-term capital gains.
Objective
The strategy seeks long-term capital appreciation by owning equity securities and ETF’s of non-U.S. based companies. Our style is designed to meet a variety of investment objectives as we seek to provide consistent growth of principal.
Strategy
The International Equity Strategy is an all-cap approach to investing that focuses on a bottom-up research. We start with a universe of several thousand companies that trade in the US equity markets using American Depositary Receipts (ADR) and exchange-traded funds. We sort 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. 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
International Equity Strategy: September 30, 2020
Strategy Characteristics
| Characteristic | Portfolio |
|---|---|
| Dividend Yield | 1.3% |
| Free Cash Flow Yield | 3.6% |
| Price / Book | 7.4x |
| Debt / Equity | 0.7x |
| Forward Price / Earnings | 46.2x |
| Price / Earnings Growth | 4.8x |
Top Ten Holdings
| Position | Allocation % |
|---|---|
| Nice Ltd | 5.6 |
| Accenture Plc. | 5.4 |
| AstraZeneca Plc. | 5.3 |
| Aon Plc. | 5.0 |
| Alibaba Group Holdings | 5.0 |
| Adidas AG | 4.1 |
| Mercadolibre Inc. | 4.1 |
| Omron Corp. | 3.9 |
| iShares MSCI ACWI ex US | 3.7 |
| Solaredge Technologies Inc. | 3.7 |
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.
Sector Weightings
| Sector | Portfolio % |
|---|---|
| Consumer Discretionary | 14.1 |
| Consumer Staples | 10.1 |
| Energy | 0.9 |
| Financials | 8.6 |
| Health Care | 10.8 |
| Industrials | 11.4 |
| Informational Technology | 28.7 |
| Materials | 5.8 |
| Real Estate | 0.0 |
| Communication Services | 5.9 |
| Utilities | 0.0 |
| Cash | 3.7 |
Capitalization Profile
| Portfolio % | |
|---|---|
| Giant | 33 |
| Large | 58 |
| Mid | 8 |
| Small | 0 |
| Median market cap | $47.7B |
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://mitchcap.com/disclosure/