Basic Principles | Measuring business momentum
In this installment of Basic Principles, Duilio Ramallo, Senior Portfolio Manager, discusses the importance of positive momentum when evaluating a business, as well as the differences between fundamental momentum and catalyst driven momentum.
Is the business getting better or is it getting worse? At Boston Partners, this is one of the questions at the heart of our investment approach. I’m Diulio Romallo, senior portfolio manager at Boston Partners. At Boston Partners we think it’s essential to understand the drivers that make every business work. That is business momentum. Our investment process at Boston Partners is a bottom-up investment process that’s centered around finding and identifying stocks that have the three attributes: attractive valuations, strong fundamentals and good business momentum – referred to as the three circles. It’s partly done qualitatively and partly done quantitatively. Simply said, a portfolio that has all three characteristics tilts the probabilities of success in our favor.
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Boston Partners Global Investors, Inc. (“Boston Partners”) is an Investment Adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Registration does not imply a certain level of skill or training. Boston Partners is an indirect, wholly owned subsidiary of ORIX Corporation of Japan (“ORIX”). Boston Partners is comprised of two divisions, Boston Partners and Weiss, Peck & Greer Partners (“WPG”).
This video is not an offering of securities nor is it intended to provide investment advice. It is intended for information purposes only.
References to specific holdings are presented to illustrate our investment philosophy and are not to be considered recommendations. The specific securities identified and described do not represent all of the securities purchased, sold or recommended for advisory clients. It should not be assumed that an investment in these securities was or will be profitable.
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