Investment Philosophy & Process
At Seascape we recognize that investing success comes from balancing diversification and concentration over the long run. Our bottom-up stock-picking applies sophisticated quantitative models to achieve that balance, allowing us to effectively identify companies that have high potential to deliver growth at a reasonable price. Risk is further controlled by maximum sector exposure guidelines and a rigorous buy/sell discipline.
Our process is based on a proprietary multi-factor quantitative model that scores each of 8,000 potential investment targets and ranks them based on such factors as long-term growth, relative valuation, return on total capital, debt, and predictability of earnings. Each of the top stocks is further assessed for more technical aspects such as relative to strength, a concentrated portfolio of approximately 30 stocks is then selected.
Our philosophy calls for limited stock trading and annual rebalancing. In addition to the market performance benefits, this approach also results in greater tax efficiency and lower costs. Overall portfolio construction is considered in stock selection, and stocks are all equally weighted. We do not time the market, and use no derivatives or leverage. The whole process is continually monitored and stress tested against new assumptions to further enhance performance and reduce risk.