Wright 💎 Quality

The Wright Quality strategy focuses on a universe of the top 300 publicly traded companies, screened based on liquidity, market capitalization, and trading volume. This ensures that only well-established companies with strong market presence and sufficient trading activity are considered. The strategy narrows the universe to companies that demonstrate exceptional financial health, creating a robust foundation for selecting high-quality, low-risk investments.

The research process emphasizes a quantitative methodology to identify high-quality stocks based on three core metrics: profitability, growth, and safety. Profitability is assessed through ratios such as return on equity (ROE), return on assets (ROA), and gross margin. Growth is measured using year-over-year improvements in these profitability metrics. Safety is evaluated using indicators such as stock beta, leverage ratios, and bankruptcy risk. By combining these objective criteria, the research ensures the selection of fundamentally strong stocks with low risk profiles and consistent performance potential.

Screening involves selecting 20-25 stocks from the top 300 universe, focusing on companies with a proven history of profitability, steady growth, and financial stability. Each stock undergoes rigorous evaluation using quality metrics, prioritizing those with strong fundamentals and low-risk characteristics. This method ensures the portfolio is composed of high-quality companies that align with the strategy’s defensive and low-risk investment approach, providing steady and reliable returns over time.

The Wright Quality strategy employs a disciplined weighting approach to ensure risk is minimized and returns are optimized, and is a flexi-cap strategy. Stocks are weighted based on their quality scores, with higher weights assigned to companies exhibiting stronger profitability and safety metrics. Monthly portfolio rebalancing ensures that the portfolio remains aligned with current market conditions and maintains low turnover, reducing transaction costs and enhancing stability. This dynamic yet conservative weighting strategy ensures the portfolio remains well-diversified and resilient across market cycles.

This smallcase has a monthly rebalance schedule. Once every month, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next month

Wright Quality Model

High quality stocks - based on profitability, growth in profitability and safety.

Wright Quality Model

Overview

Stocks & Weights

At a Glance

Holdings Distribution