Texas Institutional
Investment Management, LLC
Mid-Large Cap Growth
The Mid/Large-Cap Equity Composite is a diversified portfolio invested in 30 to 40 Mid-Cap and Large-Cap growth equity securities, defined as having market capitalizations greater than about $3.0 billion.
Investment Process
STEP 1
Idea Generation
“MOA” (Maker of Alpha)
Proprietary stock screen run weekly
STEP 2
Quantitative Ranking
Propietary “Competitive Scoring System”
STEP 3
Grunt Work
Exhaustive research money managers are paid to perform
STEP 4
Portfolio Construction
Developed utilitzing research dating back to 1935
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Identifies common characteristics of stocks in the early stage of a significant and steady price appreciation trend
Identifies acceleration and improvement in:
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Free cash flow
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Revenue
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Earnings
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Profit margins
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Relative strength and momentum
The MOA screen reduces roughly 7,500 potential candidates down to an average of 10 to 20 candidates for further analysis.
Stocks are ranked from most attractive to least attractive
Compares 144 variables to the industry, sector, and S&P 500
Provides overall score and sub-category weightings:
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Risk
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Return
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Margins
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Growth
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Turnover
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Valuation
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Balance Sheet Liquidity
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Industry Outlook
Setting the priorities for further review.
Fundamental Research: Focuses on cash flow, earnings quality, earnings estimate revisions, and debt exposure
Technical Research: Explores trend lines, pricing patterns, Gannangles and Fibonacci retracement lines - “Where we make the difference”
Target 30-40 companies that are positioned for internally funded sustainable growth, have superior technical characteristics, and are identifiably undervalued relative to their appreciation potential