Northgate Equity Strategy Pool

The Northgate Investment Pool is an actively managed equity portfolio that provides investors with North American and International equity exposure through a combination of strategies and investment styles.  The pool invests in large blue-chip, fundamentally sound companies that have a track record of strong, consistent and predictable earnings growth.  The strategy has a strong momentum bias, meaning that it favors companies that are in uptrends and have strong shorter-term price performance.

Northgate Investment Process

  • Build a Sandbox of North America's Best Companies

    • Using fundamental & technical analytics, we build a screening model to identify & shortlist large-cap, blue-chip US, Canadian and in special situations, select International stocks, that meet our general investment criteria.
    • We do this by screening for companies using our proprietary 12-factor scoring system
    • We seek out companies that have performed well during periods of declining stock prices
    • Through this process, we have identified the top 100 companies listed on US Exchanges and the top 75
      companies in Canada as candidates for our portfolio
  • Identify Portfolio Candidates

      • We screen for attractive P/E multiples, earnings growth, strong balance sheets, price momentum and other
        key metrics from specific sectors and industries to identify target companies
      • Next, we rank companies based on short-term performance (3 and 6 months)
      • Using this approach, we select the most fundamentally sound companies with strong 3 or 6 month
        performance from our candidates list
  • Portfolio Construction

    • We cherry pick a diversified basket of stocks
    • Our primary goal in the equity portion of the portfolio is to minimize risk and volatility. To do this, we avoid “having all our eggs in one basket”. We don’t put too high a percentage in any sector but prefer a more diversified and balanced approach
    • We seek to purchase these companies at reasonable prices when they are in strong price uptrends and avoid
      companies in downtrends. Finding the right combination is the key to achieving the best return at the lowest level of risk
  • Portfolio Maintenance

    • Northgate is an actively managed portfolio
    • Northgate is an actively managed portfolio. We use a disciplined risk management approach and exit stocks
      when price trends or fundamentals change
    • We constantly monitor our holdings to ensure they continue to meet our strict investment criteria. Company
      fundamentals change quarterly when companies report performance, but prices change daily and can often signal changes in the future direction of a company’s stock performance
    • When a company’s price trend changes, we revisit the fundamentals and make changes when potential problems or risk increases
    • To select replacements, we follow our process for stock selection (identify candidates, choose the best companies with strong price momentum and trends