ProcessTetrem follows a disciplined investment process that encourages constant interaction and the continual vetting of ideas among our investment professionals. Our fundamental approach is focused on finding securities where the misalignment of fundamentals and expectations has created a compelling investment opportunity. Tetrem's process is designed to preserve and grow our clients' capital over time, by structuring the portfolios to offer superior risk/return profiles. We utilize a Portfolio Management Team approach that is collectively responsible for approving investment decisions within our Canadian and U.S. strategies.
Tetrem's research process is iterative and collaborative by design, as we believe this is the best way to promote sound decision making and continually improve our approach to investment management. Potential investment ideas are typically generated by the Portfolio Management Team, with members of the Analyst Team performing an initial review. The focus of this review is on determining whether or not the company meets Tetrem's criteria to be considered a viable portfolio candidate. Our Valuation, Mean Reversion, Economic Moat, and Risk (VMER™) framework forms the pillars of this evaluation criteria.
There are various components of risk management embedded throughout our investment process. Risk is primarily analyzed at the individual security level and then managed at the portfolio level to ensure appropriate diversification and a compelling risk/reward profile. Tetrem's Portfolio Management Team is responsible for overseeing the risk management of the portfolio, as they collectively approve the investment decisions. The Team's years of experience serves them well in this capacity and enables members of the Analyst Team to uncover their own investment recommendations and present their highest conviction ideas for approval.