Our Investment Process

At the core of Cap Six’s approach is a disciplined, process-driven framework that begins with clearly defined investment objectives, ensuring alignment with client priorities. Through systematic idea generation and rigorous security selection, we set out to construct balanced portfolios that seek to optimize risk-adjusted returns. This process is sustained by continuous oversight and adaptive management, helping us to navigate evolving market conditions while maintaining a focus on performance, risk mitigation, and tax efficiency.

Our Five-Step Investment Process

1. Define the Objective

• Establish clear goals for each strategy, such as growth, income, or total return objectives.

• Assign performance benchmarks that provide a relevant measure of success.

• Set risk parameters for position sizing, sector weights, and risk-factor constraints.

2. Maximize Stock-Level Research

• Analyze billions of data points using advanced data science and proprietary performance metrics.

• Identify signals with a demonstrated ability to generate alpha using evidence-based scoring and validation.

• Continuously recalibrate models to surface the most reliable investment ideas in real time.

3. Portfolio Construction & Risk Management

• Translate research insights into optimal weights through proprietary construction tools.

• Apply multi-layered risk controls across sectors, risk-factors, and position sizes.

• Concentrate capital in the highest-conviction opportunities within an evidence-based framework.

4. Investment Committee Oversight

• Conduct confirmatory due diligence on every security before inclusion in a portfolio.

• Validate research timeliness, source reliability, and alignment with strategy objectives.

• Review risk exposures and tax considerations to ensure portfolios remain balanced and efficient.

5. Ongoing Portfolio Monitoring

• Monitor holdings daily, tracking earnings, news, and signals that may affect performance.

• Assess attribution to understand sources of return and refine future decision-making.

• Adjust portfolios opportunistically as new research and market conditions evolve.

A Complete Investment Framework

Cap Six was built to address the shortcomings of today’s dominant equity models: the biases of traditional active, the rigidity of quants, and the short-term orientation of direct indexing. Our process starts with clear objectives and applies proprietary research to identify high-conviction opportunities. We combine disciplined portfolio construction with rigorous risk and tax management, all reinforced by continuous oversight. By uniting evidence-driven research, systematic discipline, and human judgment, we aim to deliver portfolios designed for both tax efficiency and alpha potential. This complete framework is built to capture opportunity, control risk, and compound returns over time.