Carret’s global approach is designed to identify and invest in the world’s attractive growth economies.  We actively manage diversified portfolios of high-quality, equity securities of companies characterized by strong managements, solid balance sheets and favorable growth prospects.

 

The cornerstone of our investment process is fundamental research. We believe there is no substitute for developing and maintaining a deep understanding of a company and the markets in which it operates.  Toward that end, we utilize a combination of both internally generated research as well as that provided by research analysts at some of the world’s best institutions. 

 

The components of our process are:

 

Top-Down Global Asset Allocation

Identify regions and countries exhibiting sustainable growth trends

 

Top-Down Industry Selection               

Identify industries at the forefront of a region’s or country’s growth

 

Bottom-Up Security Selection              

Identify an industry’s leading companies likely to benefit from its strong financial and management position.

 

The security selection process is rooted in a GARP (Growth at a Reasonable Price) approach, whereby we strive to balance between strong company earnings and relatively low company valuations. The measurements we use to identify attractive candidates include relatively low price/earnings (P/E) and price/earnings growth (PEG) ratios. 

 

While the selection and purchase of securities are important, the disciplined selling of securities is equally important, as our fundamental process considers such factors as a company’s change in management, deterioration of valuation measures, increased competition, or heightened government regulation may signal change in our view of a company from positive to negative.

 

The result is a portfolio, diversified by country and industry, containing approximately 40 to 60 publicly-traded securities.