Equity Screening on Key Drivers

Factor-based equity screening systematically identifies key fundamental factors.

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Challenge:

In Q2 2020, an Amenity client hypothesized that margin and market position would be the key drivers for success in the IT sector, and needed a way to systematically identify companies positively discussing these topics on their latest earnings call.

Solution:

Executing on that hypothesis in the Amenity platform, a screen was created for IT companies most positively discussing those margin and market position during their Q2 2020 earnings call, identifying 15 standouts on which to begin their analysis.

Research teams, portfolio managers and analysts use Amenity to screen for equities based on earnings commentary around key factors including Margin, Capex, Guidance, Market Position, M&A, and Headwinds/Tailwinds. The end result is an efficient, scalable way to monitor exposures, generate ideas, and quickly validate investment theses.

Outcome:

• Increased returns with informed investment decisions that reflect the fundamentals of a business
• Position to manage risks and exposures in equities
• Gained analytical Insights from anomalies based on fundamental company drivers that were undiscoverable elsewhere