iQ International Titans Model
A low-trading model averaging just one position change per quarter.
All you need is a simple rebalancing tool.
INVESTMENT OBJECTIVE
The iQ International Titans Model identifies the world’s elite industry leaders—firms that don't just survive global cycles but thrive by converting their assets into dominant earnings. We focus on what we call the “Fortress Giants”—international market leaders sitting on strong cash reserves and firmly aligned with their shareholders. These are companies built to last, with the financial strength and proven leadership to create long-term value.
INVESTMENT PROCESS
Liquidity Check: We focus on international leaders that trade on US exchanges. This ensures you can move client capital in and out with ease, avoiding the pricing friction and execution delays common in illiquid foreign markets.
The Unbroken Dividend Rule: We look for a proven culture of returning cash. If a company hasn't paid a consistent dividend every year for the last five years, they are immediately disqualified. We want firms that have demonstrated fiscal resilience through every stage of the market cycle.
Aligning with the Insiders: We want to see firms that believe in their own value. We filter for companies that have actively bought back their own stock within the last twelve months. If a company is confident to buy themselves, shouldn’t we?
The Top 10% Efficiency Standard: We rank the remaining qualified titans by Return on Assets (ROA) and select only the top 10. These are the world's most efficient capital allocators, identified for their ability to generate dominant earnings relative to their asset base.
This model reconstitutes every February, May, August and November and averages less than one position change every reconstitution.
Why Global Giants MAY Belong in Your Portfolios
Owning big companies outside the United States is more than just a good idea—it’s a necessary move for any serious portfolio. Here is why we look across the globe:
Breaking the US-Only Habit: Most investors have almost all their money tied up in one country. By looking abroad, you make sure your wealth isn't stuck if the US market hits a rough patch while other parts of the world are thriving.
Capturing Faster Growth: The next big economic boom might not happen in our backyard. Many global markets are growing at a faster pace than the US, giving you a chance to profit from the rise of new consumer classes in different regions.
Access to Best-in-Class Businesses: Some of the world’s most successful companies in luxury goods, specialized healthcare, and high-end tech aren't based in America. If you only buy US stocks, you are locked out of some of the highest-quality businesses on the planet.
Understanding the Risks
Investing in large global companies still has specific risks, such as sudden changes in local laws or political trouble in foreign countries. You also have to deal with currency swings, which can cut into your profits if the U.S. dollar gets stronger while you are holding foreign stocks. Even the most stable "fortress" businesses can lose value when the whole market crashes, meaning your original investment is never completely safe from loss.