The Earnings Revision Growth investment strategy focuses on US stocks, and is comprised of between 25 and 40 primarily large-cap holdings. It aims to invest in low-risk companies with healthy balance sheets, but also deliver earnings growth.

McComsey’s process screens securities through 53 factors which the firm says are characteristics of enterprises that have outperformed the market during recessions, and thus the strategy seeks to provide diversification.

Once a stock has met these criteria, McComsey uses its research method to identify the companies experiencing positive analyst EPS estimate revisions for the near and long term. This step is based on the views of analysts that the firm has ranked as being the most accurate, using the accuracy of their prior forecasts.

The last step of the selection process is based on industry peer comparison and individual company guidance to assess earning visibility driving EPS estimates.

“We take a systematic approach to analyzing data and have developed the ERG strategy after an exhaustive research process. Our multi-factor model was developed after studying numerous factors over a 15-year time period to determine which were the most relevant,” said Mark McComsey, managing director and CIO of the asset manager.

The firm says that, since the market lows, its screening process has identified a significant increase in high-growth candidates across more sectors of the economy.