Gryphon characterises its investment style as "Growth at a Reasonable Price". Our portfolios are built using a stock selection approach which is driven by fundamental analysis. Our goal is to identify growth potential by focusing on specific financial and industry variables that vary in significance depending on the stage in the economic cycle. This portfolio serves to underscore economic and financial market themes that are expected to outperform in the next 12-18 months.

The three most important decision factors on which we structure our portfolios are:
     • Identify attractive broad economic sectors that will outperform 
     • Identify stocks with timely characteristics within those sectors
     • Stock market outlook and interest rate forecasts

Our investment process creates a portfolio by developing estimates and price levels for the key North American markets, forecasts of both long and short-term interest rates, gross domestic product, inflation and other macroeconomic factors. Based on themes that are likely to dominate the Canadian Market over the next 12 months, these themes are then used as a basis for the specific over/under-weightings of TSX sectors. Individual security selection, while also influenced by the investment themes, is driven by bottom-up fundamental analysis of earnings, cashflow, balance sheets and industry dynamics.

An important feature of our in-house research is discussions with companies, suppliers and end-buyers of a corporation's products and services. This provides us a far better understanding for critical industry dynamics such as capital investment, financing, capacity, labour, pricing and supply/demand. This combination of subjective and objective information forms the basis for our decisions to over/underweight a specific sector. Gryphon's individual stock selections serve to confirm and verify the portfolio themes.