Philosophy

While many investors believe that stock prices follow absolute earnings growth, our research shows that stock prices follow unexpected growth in earnings.

Smith Group believes…

companies that can sustainably grow earnings faster than expected will experience strong stock appreciation. The phenomenon of unexpected earnings growth will persist even in markets where information is readily available and rapidly absorbed, and we will continue to find the unexpected based on the innate human tendency to delay recognition of change.

The most attractive earnings not only are (1) above analysts’ expectations but also (2) based on high-quality financials and (3) not yet recognized by investors. Unexpected growth can be captured consistently through certain recurring clues — and an investment process that marries technology with human judgment.

We further believe that technology supports a well-defined, efficient framework for human decisions, resulting in superior stock selection and portfolio construction. By integrating technology with fundamental research, we create risk-controlled portfolios of companies with unexpected growth potential.

Our Process

Our strategy is distinguished by utilizing a systematic, model-based framework that helps us research potential investments swiftly and methodically.

By starting with a quantitative framework, we often are able to find unexpected growth in counterintuitive places, and we also are able to recognize — without emotional bias — when it is time to sell.

Our investment process identifies companies with the potential for unexpected earnings growth, strong earnings quality and reasonable valuations. Portfolio risk is addressed through diversification, position weighting and risk model analysis. We manage the portfolio in alignment with specific fundamental characteristics consistent with our investment philosophy.

Smith Group exists to provide high-quality investment management services to institutional and high-net-worth clients. 

Contact

Get In Touch

100 Crescent Ct. Ste. 1150
Dallas, TX 75201
(P) 214-880-4600
TF: 800-582-3435
info@smithasset.com
M-F: 8am-5pm