Investment Process

High Pointe has developed a more complete stock valuation model than standard industry models.

Our investment strategy starts with recognition of the fact that as our economy has transitioned from the "industrial era" to the "information era" during the last 30 years, the most valuable assets of many companies are no longer physical assets and, therefore, are not recorded on the balance sheet. For example, Coke’s most valuable asset is its brand equity, Ebay’s is its first-mover advantage, Pfizer’s are its patents and R&D, etc. Traditional accounting standards do not capture the value inherent in these intangible assets which, according to research studies, now account for a significant portion of the value of U.S. companies.

High Pointe recognized these important shifts many years ago and developed a Competitiveness Index to measure and incorporate intangible assets into a disciplined stock selection process. The investment process features a five-factor models based on:

Competitiveness Score
Historical Valuation
Expected Revenue Growth
Expected Earnings Growth
Size

The model identifies stocks that are highly undervalued given their quality and growth characteristics. High Pointe then conducts fundamental analysis on these stocks to create “best ideas” portfolios for each product diversified across a minimum of 15 industries.