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Learn More About ICON's Approach to Investing

Investment Philosophy

Thinking Outside the Box

To understand what sets ICON apart from our competitors, it's important to begin with the unique philosophy that underlies every investment we make. We bring an analytical logic to the world of investing - a logic that aims to place results above subjective decision-making.

ICON's approach advances the methodology originally developed by Benjamin Graham, the so-called "Father of Securities Analysis." Although numerous investment managers, most notably Warren Buffett, base their approach on the analytical teachings of renowned pioneer Benjamin Graham, ICON has taken his methodology one step further.

While Graham sought to estimate intrinsic value through an equation he published in 1962 titled “Central Value Formula,” he was unable to confirm its accuracy, lacking appropriate measures for normalized earnings or future earnings growth. ICON’s modifications to Graham’s formula incorporate the following raw data from independent sources:
  • Average earnings per share
  • Future earnings growth estimates
  • Beta or risk measure
  • Bond Yield

Having determined intrinsic value based on these financial fundamentals, we then consider current market price, creating a value-to-price ratio. This tells us whether a sector, industry or security is under- or overpriced relative to our estimate of intrinsic value. Typically, we look for industries that are priced below our estimates of fair value while demonstrating six months of relative strength.

In doing so, we aim to capture market themes that historically have lasted between one and two years. As themes develop, industries can migrate in size and style, placing arbitrary barriers or restrictions on other investment managers. In contrast, as a Multi Cap manager, we view the market as one asset class, affording us the flexibility to go anywhere on the grid in order to find value and identify changing themes.

Our system helps us identify underpriced industries beginning to show market leadership. However, because the ICON methodology is analytical, quantitative and non-emotional, we do not rely on traditional brokerage research, nor do we visit companies or meet with management. Instead, we buy data, compute value and follow our methodology.

There are risks involved with mutual fund investing, including the risk of loss of principal. There is no assurance that the investment process will consistently lead to successful results. An investment concentrated in sectors and industries may involve greater risk and volatility than a more diversified investment, and the Technology sector has been among the most volatile sectors in the market.

ICON’s value-to-price ratio is a ratio of the intrinsic value, as calculated using ICON’s proprietary valuation methodology, of a broad range of domestic and international securities within ICON’s system as compared to the current market price of those securities. To analyze intrinsic value, the ICON valuation methodology relies on the integrity of publicly released financial statements.

ICON’s value-based investing model is an analytical, quantitative approach to investing that employs various factors, including projected earnings growth estimates and bond yields, in an effort to determine whether securities are over- or underpriced relative to ICON’s estimates of their intrinsic value. ICON’s value approach involves forward-looking statements and assumptions based on judgments and projections that are neither predictive nor guarantees of future results. Value readings are contingent on several variables including, without limitation, earnings, growth estimates, interest rates and overall market conditions. Although valuation readings serve as guidelines for our investment decisions, we retain the discretion to buy and sell securities that fall beyond these guidelines as needed. Value investing involves risks and uncertainties and does not guarantee better performance or lower costs than other investment methodologies.

ICON’s “relative strength” estimate reflects ICON’s calculation of how an individual stock has performed compared to the broad stock market over a specified period of time.

Bond Yield represents an opportunity cost in the valuation model.

The beta coefficient is a measure of a portfolio’s volatility relative to the market. An index relevant to the portfolio is used as the proxy for the market, and is considered to have a 1.00 beta. Therefore, if the portfolio has a beta of 1.50, it has historically been 50% more volatile than the market for the periods shown.

Consider the investment objectives, risks, charges, expenses, and share classes of each ICON Fund carefully before investing. The prospectus, summary prospectus and the statement of additional information contain this and other information about the Funds; please read the prospectus, summary prospectus and the statement of additional information carefully before investing. ICON DistributorsSM, distributor


ICON Funds are offered only to U.S. citizens or residents of the U.S., and the information on this Website is intended only for such persons. Nothing on this Website should be considered a solicitation to buy or an offer to sell shares of any ICON Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.