Investment Process

Contango has an effective and disciplined investment process that has been proven to add value since the company’s inception in 1998. The investment process is based on the Company’s investment philosophy that economic conditions drive stock and sector performance.

Contango’s investment process is a combination of top-down and bottom-up analysis. This enables the team to add value at both the stock and sector level.

The process starts with the Economics Team’s economic analysis and forecasts. Here the team outlines the likely path of key economic and financial market variables over the next 12 months.

The next step is to convert these economic insights into investible sector recommendations. Contango has developed its own proprietary “Super Sectors” which help to group stocks and industries by their key economic drivers. This is a key part of the process and helps to facilitate the economic insights into investable recommendations.

Once the Super Sector positions have been finalised, it is then the job of the equity analysts to populate those sector positions with their preferred stocks. The equity team undertakes rigorous research and modelling of all Companies it intends to invest in. These models are integrated financial statements with forecasts out at least 3 years.

Finally, once the Super Sector and stock positions have been finalised, the team constructs a final portfolio with consideration for overall risk and specific portfolios objectives.

Investment_Process_Diagram

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This website is intended for Australian residents only, and is not intended for U.S. domiciled or U.S. Resident investors, or persons or entities who are located or a resident of a country located outside of Australia. Contango Funds Management Limited ABN 52 085 487 421, AFSL 23711 (‘CFML’) is the Responsible Entity of the Contango Managed Investment Scheme ARSN: 099 665 264.

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