IronBridge | Netols | New Star | Reams | Sky
PRODUCTS   International Equity      Global Equity   Emerging Markets Equity   European Equity >     Firm Overview   Management Team	The European Equity strategy follows a similar outline to the process used for International and Global mandates, with the European Equity Team responsible for all country, sector and stock decisions. The team meets every two weeks to discuss revised rankings and developments for each of the countries in their universe. They evaluate long-term factors such as forecast country/sector profit growth and structural domestic demand for equities, and medium-term variables that include likely changes in short rates and fiscal policy. These can include liquidity conditions, excess money growth, exchange rate implications, upside and downside profit surprises, valuations relative to potential and the effect of technical (supply/demand) factors. Country ratings and sector allocations are determined at this meeting. Individual stocks are researched on a fundamental basis to identify those that meet the country and sector objectives. New Star conducts research using a combination of company visits, broker research, analyst meetings and financial databases. Stock candidates are further analyzed using Economic Value Added (EVA) methodology to understand the factors driving company profitability, highlight companies that should be avoided and make cross-border comparisons. Managers prepare recommendation notes that define the stock's role in the country/sector strategy and its growth potential relative to its peer group. Portfolio managers are responsible for stock selection within their region of expertise based on a combination of country, sector and stock-specific considerations. New Star actively manages currency to reduce risk and add value if a client's mandate allows. The Currency Team researches and establishes the firm's views on currency and effectively provides an internal currency overlay service.