Our Proprietary Investment Process

Leedom Asset Management utilizes a unique and proprietary investment process in its stock selection. We use four proprietary screens in our selection process as outlined below.

Universe of Companies
We first build a universe of companies that we research and seek to gain a working knowledge of. Our emphasis on the more than 750 companies that are near to us in California has allowed us to benefit from local "buzz" and news, relative ease and proximity of meeting with company management, attendance of relevant investor conferences, and in gaining a feel for stocks trading at favorable valuations or experiencing rapid growth.

Institutional Intelligence
Through our proprietary LeedomCharts process, developed in 1992, we detect favorable early-stage institutional accumulation patterns. These patterns alert us to potential emerging situations or positive changes to earnings and operational growth. Our proprietary process serves as an important front-line in identifying stocks to rigorously research or contact management. LeedomCharts also alerts us to institutional selling that may indicate negative upcoming news.

Fundamentals
Portfolio manager Bud Leedom and his team of four research analysts conduct fundamental research analysis on each selection of the California Golden Bulls portfolio. In addition to an understanding of products, technologies, and competitive dynamics in the marketplace, we conduct a thorough analysis of company fundamentals. We believe that earnings and operational growth are the ultimate drivers of share prices and our fundamental analysis provides the basis of our portfolio selections.

Valuation
We establish price parameters for our buy and sell decisions based on historic and current valuation metrics. By assessing these parameters we determine the percentage of purchase and associated pricing levels for each buy selection. We similarly use this process for our sell discipline.

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