A Disciplined Approach
Portfolio Construction
Cardinal Point applies a disciplined process to portfolio construction. Research drives this process and includes in-house fundamental, quantitative, and technical analysis, complemented by high-quality external research from brokerage firms around the world and leading independent research providers.
Broad global themes are discussed regularly with the goal of identifying potential top-down insights. Capital market valuations are considered when implementing recommendations regarding asset allocation, industry weightings, and specific company exposure.
Long-Term Ownership
We view ourselves as partners in the businesses we invest in, not short-term speculators. This long-term perspective helps guide disciplined decision-making through changing market conditions.
Equity Strategy
Sound fundamental analysis and careful security selection are essential to achieving strong results in global equity markets.
Through ongoing screening and fundamental analysis, we build diversified portfolios of quality mid- to large-capitalization companies led by capable and motivated management teams. Our research process includes regular communication with company management and senior analysts within the investment community.
While Cardinal Point generally takes a long-term investment perspective, portfolios are continually monitored. If a company unexpectedly changes strategy or fails to meet expectations, we promptly reassess the position.
Should changing capital markets or personal circumstances warrant a shift in asset allocation, portfolio managers have the flexibility and expertise to adjust portfolios accordingly.
Security of Principal and Income
Fixed Income Strategy
The core of the fixed income portion of portfolios is constructed with capital preservation and income generation as primary considerations. High-quality bonds provide diversification, reduce volatility, and generate consistent income. To maximize total return without taking unnecessary risks, we invest primarily in high-quality short- to intermediate-term bonds. Our holdings are generally highly marketable, providing flexibility to adjust portfolios as conditions change.
Individually managed accounts allow portfolios to be tailored to each client’s specific goals and objectives. Tax considerations are also an important part of the investment process, helping ensure fixed income investments contribute effectively to overall portfolio returns. Where appropriate, income-oriented securities such as convertible bonds and preferred shares may also be utilized.
Our fixed income process incorporates analysis of macroeconomic trends, central bank policy, inflation expectations, credit spreads, and yield curve dynamics. These factors help guide duration positioning, sector allocations, and individual security selection.