Investment Process

Investment Process

Guild studies the global markets looking for what we like to call tailwinds, macroeconomic and sociopolitical, or demographic changes or trends, which create investment opportunities in countries, sectors and industries and companies.

Once we find these tailwinds, we then do bottom up research on target companies to determine their potential for appreciation. When it comes to investing in stocks, we like to invest in undervalued companies in growing industries. We often look for companies that sell at P/E ratios below their anticipated percentage rate of earnings growth. Our long-term success has been based on fundamental research and a deep understanding of the companies we own.

Guild likes to find companies that have fallen in price or are under-appreciated due to: 1) a stock market decline that leaves the stock of a growing company cheaper, on a statistical basis, than its mean valuation over the past 10 years (because we know from our many years experience that valuations eventually revert to the mean), or 2) an industry group, or sector related decline in price due to cyclical reasons or due to market perceptions about a specific industry that we believe may be temporary.

Guild provides active portfolio management. Guild does not believe that you have to be fully invested in stocks at all times. Guild seeks opportunities that have favorable reward / risk parameters, and utilizes an opportunistic style that is responsive to changes in the markets. Guild continuously re-evaluates the asset allocations and positions in its portfolios. As part of our investment style, we also utilize currencies, bonds, options and precious metal shares, depending where we see opportunity. Guild utilizes foreign currencies and foreign currency denominated cash equivalents to earn income and attempt to capture appreciation from foreign exchange trends.

Investment Criteria

Before investing, companies are screened to see if they meet our investment criteria. We look for candidates that have the potential to appreciate 50% in twelve months and have perceived reward/risk potential of three to one.

Risk Management

On a regular basis, Guild visits or speaks with executives of companies, their competitors, suppliers and customers about industry trends. This ongoing data gathering by Monty and the team of professionals and analysts is one of the keys to achieving returns and managing risk.

The investment portfolios and the positions held are consistently monitored by Monty Guild in light of changing economic climates and market environments. We employ a proprietary risk management system whereby positions are constantly re-evaluated based on their operating performance and on their investment performance.

Being flexible enough to quickly adjust to changes in the marketplace and to increase or reduce market exposure is fundamental to the process that helps protect capital in times of increased risk thereby making it easier to take advantage of opportunities when they arise.