Investment process

DNR Capital uses a fundamental bottom-up research process with a top-down overlay. Each stage of the process is outlined below.

Liquidity filter

for a stock to be eligible for investment is must satisfy our liquidly assessment.

Idea generation

quantitative and quality screening
company and industry contacts
daily meetings to discuss findings and allocate tasks

Security research

phase 1 – ‘Quality Web’ assessment
– strength of management
– balance sheet
– earnings
– industry structure
– ESG review
phase 2 – fundamental bottom up valuation and investment thesis

Portfolio construction and ongoing portfolio management

Portfolio construction

Recommended stocks considered given:

top-down considerations
portfolio characteristic impacts
stock and sector correlation analysis
after-tax consideration
monthly ICM review provides strong oversight of process

Ongoing portfolio management

conclusions constantly retested
sell decisions based on:
– reach target valuation
– deterioration of quality characteristics / investment thesis

This process is adapted for the Australian Equities Income Portfolio and the Australian Equities Socially Responsible Portfolio to take into consideration the respective income and socially responsible investing criteria specific to these portfolios.

For further information please contact us on info@dnrcapital.com.au

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