The Seascape SeaPort^TM Portfolio Management System

Based on years of experience in the markets, Seascape Capital Management’s founder developed an investment process called SeaPort^TM that balances diversification and concentration over the long run.

In short, SeaPort^TM applies a disciplined, bottom-up stock-selection process that follows sophisticated quantitative models. This allows us to identify companies with high growth potential at a reasonable price. Under the system, risk is controlled by applying maximum sector exposure guidelines and a rigorous buy/sell discipline.

The selection process is based on a proprietary, multi-factor quantitative model that scores each of 8,000 candidates and ranks them based on factors such as fundamentals, earnings estimates and technicals. Once a list meeting these criteria is identified, each one is looked at more closely before a concentrated portfolio of approximately 30 companies is selected.

Limited trading based on a precise buy/sell discipline is essential to the process. This results not only in market performance benefits, but in greater tax efficiency and lower costs. Overall portfolio construction is considered in equity selection, and stocks are equally weighted at time of purchase. The whole process is continually monitored and stress tested against new assumptions to further enhance performance and reduce risk.