We believe companies which are long-term winners exhibit identifiable common characteristics known as 'Quality Factors'. We believe the market systematically undervalues the prospects of these companies and an investment process focused on identifying Quality companies, at the right valuation, may deliver superior performance for our clients in the long term.

Our pursuit of Quality combines bottom-up fundamental and quantitative analysis to identify investment opportunities. Throughout our analysis we focus on understanding four key characteristics for a potential investment:

  • Profitability – Returns and Margins
  • Persistence – Growth of Returns and Margins
  • Protection – Leverage and Volatility  
  • People - Capital Management 

The equity investment process is focused on identifying Quality stocks by leveraging our proprietary four factor Quality model. These four factors are incorporated into each stage of the investment process.It can be broadly divided into four stages:

  • Idea generation
  • Research
  • Portfolio construction
  • Risk management


DOWNLOAD WHITE PAPER - QUALITY MATTERS

We have produced this white paper, QUALITY MATTERS, to explain why we adopt a quality investment philosophy at Davy Asset Management. In the paper, we detail the fundamentals that are most important, and present current academic evidence to support our convictions.


DOWNLOAD WHITE PAPER - INVESTMENT PROCESS - EQUITIES

The equity investment process is focused on identifying quality stocks through leveraging our proprietary four-factor quality model which can be broadly divided into the stages of: idea generation, research, portfolio construction and risk management.


See how our Investment Approach is implemented in our Strategies