Identify prospective sectors, undervalued firms and/or high-growth stocks, then evaluate investment attractiveness with business reports and IR resources.
Arrange a company visit or a conference call if expected rate of return is high.
Compile a report after the visit or conference call, examine corporate performance outlook and valuation.
Discuss internally about the report to gauge the investment attractiveness through various perspective of managers.
Add prospective high return stocks to the portfolio.
Continuous follow-up and risk management by the stock manager after portfolio inclusion.