The first step of the process involves an evaluation of a business by assessing its quality and assigning a grade (A+, A, A-) based on a series of quantitative and qualitative factors. We refer to this as The Manitou Grade A system.
The second step of the process requires us to determine a company’s value by determining an estimate of its true (intrinsic) value.
Thirdly, after determining a grade and a valuation, we aggregate all of the businesses under our Master Control Sheet and rank them all on a risk-adjusted basis.
The fourth step requires us to establish a set of protocols that represent a series of a minimum set of absolute rules that must be adhered to in constructing portfolios.
This final step is driven by eligibility (e.g. only Canadian stocks allowed in Canadian mandates, and US stocks in US, etc.), and a combination of a proprietary capital allocation model and ultimately driven by the judgment of our portfolio management team.