Our Selection Process
At Plimoth Investment Advisors, our investment process is designed to bring structure, consistency, and insight into every portfolio we manage. Each step, from initial security screening to final portfolio construction, is driven by in-house research and the experience of our investment professionals. We do not outsource our analysis or decision-making. Instead, we rely on a disciplined, data-informed framework to identify high-quality investments and build portfolios tailored to client needs.
Below is an overview of the independent processes that guide our work.
Security Selection Process
Equity Selection Process
- Total Available Equity Investments
- Bloomberg screening utilized to create Equity Investment Universe
- Approximately 1,200 eligible equity securities
- Quality screening, Internally developed equity model, Independent research, Qualitative business assessment and Relative Value assessment utilized to create Equity Buy List
- Equities selected from Buy List to create customized client portfolios
Equity Selection Process
Stocks are included in client portfolios to provide long-term growth, and in some cases, enhanced income. The growth not only helps fund future spending needs but also protects the portfolio against the negative impacts of inflation.
We purchase high-quality companies to be held in portfolios with a long-term time horizon. We utilize both quantitative and qualitative research to build high-quality portfolios with below average risk for our clients.
Our quantitative investment model analyzes stocks relative to their peers across thirty-five data points that can be broken down into five broad categories. These categories include:
- Financial Strength
- Profitability
- Earnings/Revenue Growth
- Cash Flow Strength
- Valuation
Each stock is scored on these categories and then a cumulative “relative” score is calculated.
Our qualitative review incorporates the analysis of independent third-party research from providers such as CFRA Research and Morningstar to augment our own independent research.
Blending these two analytical processes, combined with experienced judgement, forms the foundation of our investment selection process.
Fixed Income Process
Bonds are included in client portfolios to generate current income and provide risk diversification. This income can be sent to the client or maintained in the account for reinvestment. In addition to providing current income, bonds are less risky than stocks, reducing the overall risk of the investment portfolio.
We maintain a high-quality bias when buying bonds and utilize internally developed valuation models to buy the most attractive bonds available for our clients. Our quantitative bond model analyzes bond yields across various sectors to determine which sectors are offering the most attractive yields for a particular maturity. This is one component of the process that ensures we are maximizing interest income for our clients. Determining which individual bonds to buy is predicated on a qualitative analysis of issuer quality, the current interest rate environment, economic environment and our outlook for interest rates going forward.
At all times, we blend these processes to maximize income over the long-term while ensuring our very stringent quality parameters are met. Consideration of a client’s unique tax situation may lead to the purchase of tax-free municipal bonds.