Research & Investment Process
Atkins Investment Group utilizes the Global Industry Classification System
- Energy
- Basic Materials
- Industrial
- Consumer Discretionary
- Consumer Staples
- Health Care
- Financial
- Technology
- Telecommunications
- Utilities
Investment Approach: Top Down Analysis
Economic Analysis Team:
Makes recommendations regarding sector allocation, industry selection, guiding a general investment strategy based on macroeconomic analysis.
Industry Evaluation:
Sector groups are responsible for evaluating sectors on an industry-wide basis, examining macroeconomic trends in conjunction with relevant company-specific statistics in order to create an attractive universe.
Company Evaluation:
Sector groups rigorously evaluate each company before ultimately recommending a buy. Groups evaluate picks from a qualitative standpoint, including the company's industry, inherent risks, business model, and competitive advantage among competitors. In recent years, Atkins has placed a greater emphasis on quantitative research including ratio comparison and financial statement analysis.
Valuation:
In an effort to quantify and define a meaningful intrinsic value, AIG employs a discounted cash flow approach for the valuation of potential portfolio additions. Beginning with the current income statements, balance sheets and debt schedules, future cash flows are forecasted using rational assumptions based on historical rates and relevant analyst forecasts.
This analysis yields a projection of future cash flows which is discounted at a reasonable rate of return. Dividing by the number of shares outstanding yields our “target price,” or the price at which AIG believes the fair market value to be. In general, we purchase securities that are 10% below the fair market value.