ROTA/ROME®

We believe that ROTA/ROME® is: Logical. Simple. Intuitive. Actionable. 

ROTA/ROME® is Cognios' proprietary quantitative, value-based stock selection and portfolio construction methodology. It serves as Cognios' Core Investment Philosophy and underpins everything we do.

ROTA = Return on Total Assets

ROTA = Return on Total Assets
Data on a Touch Pad
  • Un-levered proprietary metric of a company’s profits divided by total assets

  • Cognios' Core Philosophy is that ROTA quantifies the attractiveness of a business relative to other investment alternatives

  • By generating more cash flow relative to their assets as compared to lower ROTA companies, high ROTA businesses tend to have:

    • More cash to reinvest for growth

    • Less need to raise external capital (i.e. raise debt & sell equity)

    • A greater ability to pay dividends & buyback shares

    • Which Cognios believes over time can lead to higher returns to shareholders

"ROTA Quantifies the Attractiveness of a Business"
ROME = Return on Market Value of Equity
Stocks
  • Levered proprietary metric of a company’s profits divided by its current stock price

  • Essentially "cash flow yield"

  • Cognios' Core Philosophy is that ROME is a key measure of how expensive or inexpensive a stock is at any given point in time

  • Cognios believes that in general buying a company's stock when it happens to be cheaper relative to other investment opportunities can lead to higher returns to shareholders than buying a company's stock when it happens to be expensive relative to other investment opportunities.

"ROME is a key measure of whether a stock is cheap or expensive"

Address:

7900 College Boulevard

Suite 124

Overland Park, KS. 66210

(913) 214-5000

info@cognios.com

The Cognios Funds are not suitable for all investors. Subject to investment risks, including possible loss of the principal amount invested.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. Click Here to view a prospectus which contains this and other information, or Contact Us. Read the prospectus carefully before investing.

The Cognios Mutual Funds are distributed by ALPS Distributors, Inc., 1290 Broadway, Ste 1000, Denver, CO 80203.

Not FDIC Insured - No Bank Guarantee - May Lose Value.

Cognios Capital, LLC is a whollly-owned subsidiary of Quantitative Value Technologies, LLC. Quantitative Value Technologies, LLC is registered as an investment adviser with the United States Securities and Exchange Commission. SEC registration does not imply a certain level of skill or training. Use of this website is governed by the User Agreement.

The content contained on this site is provided to users "AS IS" without any express or implied warranty.

ROTA/ROME® is a Registered Trademark of Cognios Capital, LLC and Quantitative Value Technologies, LLC. All rights reserved.

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