Piermont’s investment process utilizes a multi-factor stock ranking system combined with a thorough qualitative “Red Flag” risk review. Security selection is conducted through a systematic, risk-controlled and repeatable process that employs multi-factor ranking models at the industry and sector levels utilizing a diverse array of factors. For each economic sector, Piermont has developed a proprietary set of key factors to evaluate each stock vs. industry and sector peers. Models are derived from extensive research conducted with the goal of maximizing both excess returns and consistency across various types of market environments. A detailed qualitative “Red Flag” risk review is also utilized to identify significant company-specific risks that are outside the scope of the models.
Asset allocation, sector/industry rotation, and market timing are not utilized in the process. All strategies are managed on a sector-neutral and beta-neutral basis, with a similar market capitalization profile to that of the relevant benchmark. As a result, excess returns relative to a benchmark that may occur are primarily derived from stock selection.
Piermont Capital Management
12444 Powerscourt Drive,
Suite 251
St. Louis, Missouri 63131
Telephone: 314.965.6847
Fax: 314.965.0039