Sky Investment Counsel's process is unique in that the firm
has a system to quantify both the valuation as well as the quality of a company.
This allows Sky's investment professionals to focus time on companies that are trading at
the low end of their historical valuation levels with quality characteristics that are
attractive. The quality of a company is determined by a proprietary scorecard which
allows them to rate each company based on its fundamentals. This process ensures
that not only is the portfolio good value, but also good quality.
Importantly, Sky will take meaningful portfolio positions (sometimes as high as 7%-8%) in
companies that offer attractive upside provided they have the highest quality
characteristics. Furthermore, the firm looks beyond traditional value sectors, which
allows them to capture opportunities their peers may be forced to overlook. Lastly,
Sky may differ from other managers in that they are willing to make unpopular decisions.
Often times, the firm buys stocks that are out of favour with the investment
community and therefore sell at a discount.