The following research paper was selected for presentation in the Due Diligence Forum program at PortfolioConstruction Conference 2008.

Category
Subcategory

Taking Stock (International Equities)
Diversified

Due Diligence Forum speaker

David Schaen
Co-President, Portfolio Manager Principal
Marvin & Palmer Assoc
brought to you by Equity Trustees

Due Diligence Forum summary

Markets – countries, sectors and stocks – move in trends, as explained by behavioural finance. While most investors focus on valuation measures, which are very important, shaping portfolios to take advantage of these trends is also important to adding alpha.

This presentation and underlying research paper explore relative price strength screens that can be used to identify trends and determine the right time to invest. They demonstrate the significant value that has been added over time by “listening to the market” in this way, and then look at how overlaying this with a focus on quality and growth – through fundamental research – can add even further alpha.