Trilogy follows a consistent bottom-up, growth-oriented investment process based on the belief that future earnings growth is a key determinant of long-term equity returns. The research discipline focuses on identifying companies with a high level of sustainable earnings power or the near-term potential to achieve such earnings power. Accordingly, Trilogy’s portfolios typically contain a mix of both traditional growth companies and early stage growth companies. Trilogy’s overall goal is to provide above benchmark returns at a moderate level of risk.
Trilogy’s process uses quantitative and qualitative screens to focus research on companies that meet strict criteria as target investments. The process focuses on identifying both proven and early stage growth companies that are likely to deliver superior earnings growth relative to their global industry peers. Investment ideas are subjected to rigorous due diligence, which may include meetings with company management and extensive financial statement analysis and modeling. A unique aspect of the process is that each analyst evaluates the upside potential versus the downside risk of every security Trilogy considers for investment. Risk management focuses on avoiding losses, rather than minimizing tracking error relative to the benchmark.