Public fund manager unlocks informed investment decisions with automated stock selection

A public fund manager covering 150-300 listed companies needed a real-time decision matrix that ensured portfolio positions were in line with the rankings of the team’s covered stocks. The goal was to develop a ranking system that would become one of the sources of idea generation, help with portfolio rebalancing and post-trade review, and encourage structured decision-making.

• Ranking focused on past results, not fundamentals: Stocks were ranked primarily on invested capital and past returns, rather than fundamental strength and expected returns
• Portfolio not aligned with market performance: A significant number of stocks expected to generate high returns were often missed
• Manual and slow review process: Portfolio monitoring was error-prone and slow due to reliance on manual steps
• No consolidated decision matrix: The portfolio, watchlist and exited stocks were not tracked on a common scale, limiting cross-sectional analysis and structured portfolio reallocation
• Decisions influenced by subjectivity: A bias towards historical performance sometimes overlooked leverage risks, management quality issues and forward earnings improvement

• Aligned ranking with fundamentals and expected returns: Built a composite score combining fundamental strength and expected returns, ensuring that decisions reflect both quality and upside potential
• Linked ranking directly to portfolio decisions: Built clear rules into the dashboard—top-ranked stocks not held require explanation, and lower-ranked holdings must be reviewed. Alerts flag opportunities after earnings changes or price corrections
• Fully automated updates: Automated data flow, from input to dashboard. Live pricing and scheduled refresh update the entire universe in ~15 minutes
• Unified and transparent framework: Created a single 0-100 scoring sheet covering portfolio, watchlist and exited names. Each score can be broken down into drivers, making ranking movements easy to understand and discuss