Institutional Asset Management Process
Our institutional asset management process is rooted in rational decision-making, disciplined research, and long-term partnerships. We take a thoughtful, active approach to portfolio management, carefully evaluating investment opportunities with our 4-point quality score index, managing risk, and aligning strategies with your organization’s objectives. Through transparent communication and consistent oversight, we help institutions navigate changing markets with greater confidence and clarity.
4-Point Quality Score Index
Factor-Ranking
Screens for profitability, predictable growth, and capital allocation. The 60th percentile and above get a wide-ranging review.
Fundamental Quality Vetting
Determines what drives growth and how capital allocation decisions change from a historical baseline to a 3- to 5-year estimation
Valuation
Compares a discounted cash flow analysis to historical ranges, the company’s peers, and the market as a whole
Portfolio Management Review
Reviews the company’s dedication to compounding value over time along with its risk
How We Evaluate Quality
Our investment process uses measurable financial indicators such as the following to evaluate the profitability, growth consistency, and capital discipline of potential investments.
Capital Allocation
3-year average cash flow ROI, dividend consistency, and recent changes in share count
Profitability
3-year average EBIT margins and current year consensus expectations
Predictable Growth
Long-term trends in EBIT, net income, free cash flow, and sell-side long-term EPS growth estimates
A Collaborative, Investment Committee Approach
Beese Fulmer conducts weekly portfolio and sector reviews, where analysts present investment recommendations to the investment committee. Each analyst focuses on the largest 25-50 companies within a specific sector, with final investment decisions approved by Portfolio Managers.
The team confirms:
- Competitive leadership in its industry
- Sustainable earnings growth
- Predictable sales, cash flow, and margin growth
- Disciplined capital allocation
- Strong shareholder returns through dividends
- Strong and flexible balance sheets
A Disciplined Approach to Portfolio Construction
Our portfolio construction process emphasizes long-term ownership, tax efficiency, and disciplined diversification. We build portfolios through bottom-up security selection, focusing on high-quality companies while maintaining thoughtful allocation guidelines and risk controls.
- 40-60 individual securities
- Initial position sizes of 1.5-3%
- Maximum position size of 5%
- Target holding period of 5+ years
- Portfolio turnover approximately 10-20% annually
- Flexible sector weighting relative to benchmarks
| INVESTMENT UNIVERSE ~ 3,500 Securities |  |  |  |  |  |  |  |  |
| FACTOR RANKINGS + OTHER CANDIDATES ~ 450 Securities |  | | | | | | | |
| FUNDAMENTAL QUALITY VETTING Profitability | Predictable Growth | Capital Allocation ~ 125 Securities |  | | | | | | | |
| VALUATION ~ 75 Securities | | | | | | | | |
| PORTFOLIO MANAGEMENT REVIEW Conviction | Risk | Liquidity ~ 50 Securities | | | | | | | | |
Disclosure: Mentions of companies or products are for illustrative purposes only and do not constitute an endorsement or recommendation.
Start the Conversation
Institutional investing requires a disciplined process, active oversight, and a partner committed to long-term performance. Connect with Beese Fulmer to discuss how our institutional asset management process can support your organization’s investment objectives.