Cardinal Capital Management
Investment Strategy

Our Approach

Cardinal Capital believes that the stock market provides opportunities for astute investors to achieve rates of return superior to those provided by market indices while taking less than market risk. Central to this belief are academic studies and successful professional experience using value approaches that have historically produced superior absolute and risk adjusted rates of return.

What is the value approach? In classic form it involves selecting stocks for investment from those selling at low prices versus observable metrics such as book value. Over the years the approach has been expanded to include multiple measures of value and the notion of relative value has been added as well.

At Cardinal Capital we have developed our own multi-factor valuation model that incorporates both absolute and relative valuation concepts. The result is a powerful tool that we use to identify unusually priced securities, both low and high. Once these stocks are identified, we perform our own independent research to validate or deny the potential investment opportunity. Once we confirm the existence of an exceptional pricing opportunity, it is a short step to implementation within client portfolios.

Utilizing relative value concepts in our multi-factor model has resulted in portfolios with solid long-term performance and low volatility compared to the general stock market. These portfolios are well diversified by investment style and market capitalization with excellent long-term absolute and risk adjusted returns.

Cardinal Capital Management Inc. Copyright © 2010