International Equity Strategy 2020-06-23T15:11:48-05:00

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: March 31, 2020

Strategy Characteristics

CharacteristicPortfolio
Dividend Yield2.1%
Free Cash Flow Yield3.7%
Price / Book4.8x
Debt / Equity0.6x
Forward Price / Earnings29.1x
Price / Earnings Growth1.4x

Top Ten Holdings

PositionAllocation %
Nice Ltd5.9
AstraZeneca Plc5.9
Aon Plc5.5
Accenture Plc5.2
Kao Corp5.1
iShares MSCI ACWI ex US5.1
Open Text Corp4.5
Alibaba Group Holdings4.5
Diageo Plc4.4
Elbit Systems Ltd4.3

Sector Weightings

SectorPortfolio %
Consumer Discretionary14.2
Consumer Staples10.7
Energy4.6
Financials10.0
Health Care10.0
Industrials12.2
Informational Technology21.5
Materials5.1
Real Estate0.4
Communication Services4.1
Utilities0.0
Cash7.6

Capitalization Profile

Portfolio %
Giant24
Large56
Mid20
Small0
Median market cap$42.4B

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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