Research Process

Research Process

The CapWealth Advisors Investment Committee oversees the asset-management research process. This group of senior executives, analysts and industry veterans guides and shapes the firm’s asset allocation with an investment approach we call Sophisticated Simplicity®.

This approach incorporates macroeconomic data and micro-fundamental analysis, including an understanding of the alternative, exotic, private and derivative investment landscape, and boils it down to intelligible, liquid, high-quality and cost-effective portfolio solutions. In our opinion, high finance is not the most structured, complicated and leveraged investment, but rather high finance is the ability to understand the inner workings of a global, layered and nuanced marketplace in order to make highly sound, considered and straightforward investment decisions for our clients.

To find the very best investments, CapWealth Advisors conducts an extensive research process before ever investing in a single security. Once we discover a company that has promising investment potential, we analyze it for catalysts that signify investment value. Some of the catalysts we look for:

  • Corporate restructuring
  • Hidden or unrealized value
  • New or exceptional management
  • Change in competitive position
  • New product developments or technology advancements
  • Potential for earnings
  • A theme-driven nature  (e.g., currency, cyclical correlation, inflation, policy)

If we believe that a company is a strong potential investment candidate, we initiate a series of independent research studies. Our independent approach can unearth information beyond what is publicly available. The sources of our independent research can include:

  • Personal meetings with management
  • Industry and investment conferences
  • SEC filings (annual and quarterly reports, proxy materials)
  • Wall Street research and industry sources
  • Personal contact with customers, competitors and suppliers
  • Comprehensive data analysis