Most investment managers construct portfolios solely around Fundamentals.
Or Technical Analysis. Or the Macro environment.
Prudence demands we understand and bring together all three.
Many traditional firms employ only a single field of study like fundamental analysis in their approach. But a singular focus may lead to missed opportunities in dynamic markets. Baker Avenue on the other hand employs a multi-discipline approach of using technical, macro, and fundamental factors in our research and analysis. Different market environments typically favor one discipline over another.
The technical approach evaluates the supply and demand dynamics of the market while fundamental analysis examines metrics such as valuation and corporate profitability. Macroanalysis involves the quantitative study of economic data and qualitative analysis of government policy and other geopolitical factors.
The combination of these disciplines gives us a more comprehensive view on markets which leads to a more robust investment thesis.
Business Cycle Analysis
Credit Cycle Analysis
Revenue & Cost Drivers
Forecasts versus Expectations
Free Cash Flow
Support & Resistance Levels
Portfolio Characteristics Review
New Securities Selection