Capturing Economic Quality

The over-riding aim of the StockR8 investment process is to create equity portfolios comprised of companies of the highest economic quality designed to provide investors with long term capital appreciation.

The process comprises an eight stage empirical method of identifying and then rating the relative economic quality of around 35,000 listed companies worldwide.

The rating is arrived at by calculating a series of key financial ratios relating to combined earnings and financial strength - all of which are derived from publicly available audited data – coupled with a stability overlay filter designed to track the consistency of a company’s financial performance over time.

The StockR8 approach looks to minimize subjectivity from investment decision process. The methodology is purely factually driven and rooted in empiricism whereby knowledge comes from evidence and proven experience.

Background

The StockR8 process has been developed by Bjarne Jensen over almost twenty years.

Early in his career, Bjarne worked as a portfolio manager at ATP, Denmark’s largest pension fund. He then held a senior position at Danske Bank during which time he also lectured in External Accounting at the Copenhagen Business School. He started his own financial consultancy, Bjarne Jensen Consult (BJC), in 1993 and BJC continues to own the intellectual property rights to StockR8.

In 2008 Bjarne founded StockRate Asset Management to develop the StockR8 process, targeting primarily Danish family offices and private clients.