DBS Earnings "Surprise" Equity Allocation (ESEA)
Each calendar quarter, we analyze approximately 2,000 companies, looking for companies that beat their current quarterly revenue and earnings estimates, that guide up for their next quarter’s earnings and which, we believe, will offer above-average short-term growth. The result of this search typically yields 5-10 companies. These companies meet the rigorous ESEA quantitative screens, but may or may not meet the quantitative investment criteria of our LTGA. ESEA selections are intended to be short-term holdings, although those that meet our standard quantitative investment criteria may be moved to our LTGA sleeve for a longer term holding period.