Focusing on valuation, relative strength, and industry rotation to capture changing market themes, ICON relies on in-house research to provide portfolio solutions for financial advisers and their clients. As a disciplined, quantitative system designed to remove the emotion from investing, the ICON methodology:
- Computes value-to-price ratios (V/P) utilizing the fundamentals of finance - earnings, projected growth, risk, and interest rates.
- Determines industries within market sectors that our system shows to be demonstrating leadership against the broader market.
- Rotates among undervalued and overvalued industries, buying those believed to be on sale, selling those seen as overpriced.
- Selects individual securities that are underpriced relative to our estimate of intrinsic value.
- Filters out corporate noise and goes against the crowd when valuation dictates.
- Places no restrictions on market capitalization or simplistic value/growth characteristics; instead seeks the best value identified by the system for the investment dollar.
Based on the fair value methodology of Benjamin Graham, the "Father of Securities Analysis," the ICON quantitative valuation model has adapted and advanced Graham's approach to today's ever-changing market conditions. By combining valuation and relative strength to uncover leading market themes, ICON stresses industry exposure, thereby lessening the random risk associated with selecting individual securities.
