How We Invest: A Three-Legged Approach to Smarter Portfolio Management
At IWS, our investment process is built on a disciplined, three-pronged framework: quantitative modeling, macro & fundamental insights, and technical analysis. This approach allows us to analyze markets from multiple angles and position portfolios proactively.
1. Newton Model
Our proprietary Newton model is a powerful quantitative engine that tracks thousands of stocks and ETFs in real time. Built in-house, it uses advanced algorithmic techniques to identify price trends based on both historical behavior and present-day conditions.
Newton ranks securities on a scale of 0 to 20 across multiple timeframes, giving our team a structured view of momentum across the investable universe. This model spotlights trend changes and helps us identify what’s working now, not what worked last quarter.
2. Macro & Fundamental Analysis
Our investment team holds daily discussions and weekly strategy calls to digest the macroeconomic environment. From inflation prints and interest rate trends to earnings season and fiscal policy shifts, we connect the dots between global signals and portfolio strategy.
We blend this top-down macro view with bottom-up fundamental research our QVGM framework (Quality, Value, Growth, Momentum). Every company in our 3,000+ stock universe receives a four-factor rating, allowing us to tilt exposure toward factors and adapt to shifting regimes (e.g., from growth to value leadership).
By emphasizing certain factors at the right time, we can align portfolios more precisely with each strategy’s objective.
3. Technical Analysis
While fundamentals guide what we own, technical analysis helps inform when to act. Our team leverages years of experience interpreting price behavior and market structure to identify trends, manage risk, and fine-tune entry/exit points.
We monitor indicators such as relative strength, volume patterns, momentum, and volatility, as well as proprietary scans tailored to our models. This third leg ensures we remain in-tune with market sentiment, helping us avoid “value traps” and stay on the right side of trend changes.
Bringing It All Together
Individually, each leg provides a unique perspective. But it’s in combination that they unlock real value. Quant shows us where strength lies. Macro/fundamentals tell us why. Technicals show us how to act. Together, they form a dynamic, adaptable investment process designed to navigate any market environment.
Advisory Services are offered through Waterloo Capital, LP. The information herein is believed to be reliable, however the accuracy and completeness of the information is not guaranteed. It is intended to provide general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer to buy or sell any securities or other investment. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Investors should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that the price or value of such securities or investments may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Information presented about tax considerations affecting client financial transactions or arrangements is not intended as tax advice and should not be relied upon for the purpose of avoiding any tax penalties. Neither WCM nor its Investment Advisors provide professional or legal tax advice. Any transactions or arrangements that may have a tax, account or legal implications should be discussed with professional legal and tax advisors.
Alternative investments involve a high degree of risk and can be illiquid due to restrictions on transfer and lack of a secondary trading market. They can be highly leveraged, speculative and volatile, and an investor could lose all or a substantial amount of their investment. Alternative Investments may lack transparency as to share price, valuation and portfolio holdings. Complex tax structures often result in delayed tax reporting. Compared to mutual funds, private equity and other alternative investments are subject to less regulation and often charge higher fees. Alternative investment managers typically exercise broad investment discretion and may apply similar strategies across multiple investment vehicles, resulting in less diversification. Trading may occur outside the United States which may pose greater risks than trading on U.S. exchanges and in U.S. markets. Alternative investments generally are offered through private placements of securities which are unregistered private placements and are available only to those investors who meet certain eligibility criteria. The above summary is not a complete list of the risks and other important disclosures involved in investing in alternative investment is subject to the more complete disclosures contained in a particular Fund’s confidential offering documents, which must be reviewed carefully.
