Through in-depth research, superior investment returns can be achieved by finding small and mid-cap companies within growing industries that have strong fundamentals and catalysts for future growth.
Shaker’s Investment process is rigorous, highly disciplined and iterative.
We develop long-term investment themes that help guide our investment ideas.
To develop these themes we evaluate the current and future economic conditions and the potential impact on growth. We then determine industries and businesses that are well positioned to thrive in these conditions.
We evaluate a number of criteria including:
Business and industry trends affecting sector growth rates
Domestic and international economic outlook
Demographic factors impacting the US and the world
Stock and bond market outlook and relative valuation
Company specific issues
Company SEC filings
The most promising opportunities developed during idea generation then enter our fundamental research pipeline.
We have developed a robust criteria for evaluating individual stocks. All companies that become candidates for one of Shaker’s portfolios are evaluated against Shaker Investments’ 11 Characteristics of Superior Growth Companies.
This process helps us turn a universe of 2000+ companies into a more manageable watch list of 150-200 companies.
Interesting candidates are then presented by individual analysts and vetted by the investment team during weekly research meetings.
35-50 long positions with initial position weight of 0.5% to 2.0%
Target holding period is 3-5 years, and potentially longer
Portfolios are rebalanced opportunistically and to maintain sector/position weighting targets.
Buy discipline (adding a new position)
Strong evaluation against our investments criteria, and consensus among investment team
Strong growth relative to price
Attractive fundamentals relative to historical ranges and industry peers
Key insider buying
Sell discipline (liquidating a position)
Sell decisions are disciplined and made with individual investment theses and the underlying fundamental strengths of each stock firmly in mind.
Fundamental growth thesis deteriorates
A better opportunity becomes available