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Portfolio Construction

Cardinal employs a bottom-up investment process in which decisions are made by consensus among the four portfolio managers. We buy a diversified portfolio of 40 to 60 securities which meet our high return target. Positions range in size from 1% to 5% of the portfolio and are weighted towards our best ideas. Key factors weighed by the team when sizing positions include business predictability, valuation, catalysts to unlock value, and liquidity. Individual industry exposure is limited to 15%. Each member of the investment team is responsible for continually monitoring the companies they cover.