Integrity Gems is a strategy that takes both long and short positions on small and mid cap stocks with the goal of outperforming the S&P in both up and down markets. In this strategy, we utilize proprietary analysis to identify small cap long positions from the most trustworthy companies as identified by Trust Across America’s FACTS® methodology, a holistic unbiased barometer of corporate integrity. We also opportunistically identify short positions from companies that are not among Trust Across America’s most trustworthy companies.
Our Integrity Gems strategy takes the highest rated small and mid cap FACTS® companies and then overlays analysis including:
- Identification of value based on fundamental perspectives.
- Evaluation of value as determined by participants supply and demand factors in each company.
- Identification of the strength or weakness of the current price trend.
- Support and resistance levels.
- Entry recommendations, stop management and exit strategies.
In this way the strategy seeks to capitalize on companies that are well positioned for long term success while also exhibiting the potential for generating near term gains.
Because small cap stocks tend to be more volatile we employ a sell discipline and may take short positions opportunistically and/or to hedge against market or sector risks. This can result in more trading activity than a typical long only recommendation service.
The FACTS® methodology identifies companies whose leadership is going beyond doing what is legal to choosing what is right in meeting all stakeholder needs. The methodology evaluates the integrity and trustworthiness of companies and rates them based on their performance in five indicators.
Research has shown that companies that are trustworthy and operate with integrity have tended to outperform over the long term. For more information on FACTS visit Trust Across America.