Independent Research & Analysis

Principled Investing
Grounded in First Principles

Independent equity research built on a clear ethical mandate — combining a low-cost halal ETF core with individually researched stocks, rigorous three-statement analysis, and Fama-French factor models to identify durable compounders.

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Screened Holdings
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Model Portfolios
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ETFs Analysed
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Statement Lenses
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Investment Philosophy

A Framework,
Not Just a Stock List

Every holding on this site exists within a deliberate three-layer architecture: an ethical screening foundation, a low-cost ETF core providing systematic beta, and a satellite layer of individual stocks targeting the profitability, size, and value factors.

The philosophy page explains the full seven-step process — from the first ethical screen to Fama-French regression validation — and why an idea can arrive from any direction, thematic or curiosity-led, yet must clear the same bar before it earns a place among the satellites.

Read the Philosophy

Layer 01 · Ethical Foundation

Four exclusion screens. Quantitative halal ratios. Applied at the business-model level — not the sector code.

Layer 02 · Core ETFs (65–70%)

Certified halal ETFs — five available to Canadian investors (SPUS, HLAL, MNZL, SPSK, WSHR). Each is already Shariah-screened by its provider. Low-cost, automatically rebalanced.

Layer 03 · Stock Satellites (30–35%)

The individual stocks I cover — 20 large-cap quality compounders (RMW+) and 12 small-cap value names (confirmed SMB+ size tilt). Each validated against primary filings. The alpha engine.

Large-cap book RMW loading · +0.33 Confirmed by 83-month Fama-French regression. The small-cap value book adds SMB & HML.
HA
Hisham Ahmed Independent Researcher
Fundamental Analysis
Halal Investing
Independent Equity Researcher
Fama-French Factor Practitioner

Conviction-Based.
Ethically Grounded.

I am an independent researcher and investor focused on identifying high-quality, ethically-screened US and Canadian equities. My work sits at the intersection of fundamental analysis and quantitative factor research, organised around a single coherent framework: an ethical foundation, a core of certified halal ETFs, and a satellite layer of individual stocks I research and cover.

For the stocks I pick, my screening process explicitly excludes gambling, alcohol, weapons, banking, and any company that generates material revenue from lending or interest; the core ETFs satisfy the same standard by construction, since each is already a certified Shariah-compliant fund. Within that universe, I assess quality across all three financial statements — balance-sheet strength, income-statement durability, and cash-flow integrity — to separate genuine compounders from value traps.

Ideas reach the satellites from wherever they happen to come — a structural theme I am following, a company someone asks me to look into, or simple curiosity — and then earn their place against the same quality bar. The satellites span two complementary books: a large-cap quality book tilted toward the profitability factor (RMW), and a small-cap value book tilted toward size and value (SMB, HML). I apply the Fama-French five-factor model as an explanatory framework to verify each book's factor exposures align with its stated mandate.

Equity Research Factor Investing Halal Screening SEC EDGAR SEDAR+ Python / statsmodels Three-Statement Analysis OLS Regression

Published Work

All Research →
Small-Cap Value · Three-Statement Analysis

A Small-Cap Value Satellite Book

A second book within the satellites, targeting the size (SMB) and value (HML) premia the large-cap book gives up. Screened halal, filtered through a strict debt/equity < 30% balance-sheet rule, and assessed with deep three-statement quality analysis grounded in the CFA curriculum.

Key Findings · What the Data Shows

Small-Cap Value: What the Data Actually Shows

The headline conclusions from the small-cap value screen — seven findings on factor loadings, the complementarity with the large-cap book, verified metrics on the twelve holdings, and an honest account of what the regression can and cannot prove.

Thematic Investing · Medical Technology

Where Megatrends Meet Medicine: The Case for Stryker

Five structural forces — demographic ageing, robotics disruption, emerging-market wealth, urbanisation, and rising healthcare spending — converge on a single company that passes every screen. Includes an original KPI dashboard built from SEC 8-K filings, organic growth analysis, and a Mako robotics moat discussion.

Company Analysis · Halal Screen · Statement Quality

Nordson & Thermo Fisher: A Halal Screen and Five-Year Statement Quality

Two quality compounders run through the seven-step satellite process — four exclusion screens, the quantitative halal ratios, and a dedicated five-year analysis of the balance sheet, cash flow, and income statement. Both pass the ethics; the financials, and an insignificant RMW loading, decide where they belong.

What the Data
Actually Shows

Portfolio-level regression across 83 monthly observations confirms the mandate's thesis — with a few important nuances.

01

RMW loading of +0.33 confirms the cash-flow thesis

The profitability factor is positive and meaningful — mathematical confirmation that the CFO screen is selecting for genuinely profitable companies, not just growing ones.

02

Portfolio R² of 0.87 — returns are factor-explained

87% of monthly return variance is explained by the five factors. No statistically significant alpha means returns come from factor premia, not luck or stock-picking. This is the expected, honest outcome.

03

Deliberate trade-off: quality over size and value

SMB –0.12 and HML –0.05 confirm this is a large-cap, near-growth portfolio. It gives up the size and value premia in exchange for quality — a defensible but explicit trade-off.

04

P&G and J&J are the weakest mandate fits

Both pass every ethical screen but CFO CAGRs of 0.5% and 0.8% respectively are functionally flat. High RMW factor loadings save them on profitability but growth is absent.

Portfolio Factor Loadings

+0.328
RMW — Profitability (robust minus weak)
0.863
Market Beta (Mkt-RF)
−0.119
SMB — Size (negative = large-cap)
−0.054
HML — Value (near-neutral)
0.87
R² — Factor explanatory power
+0.87%
Annualised Alpha (t = 0.38 — not significant)

How the Screens
Work

Two exclusion screens applied before any financial analysis, followed by a three-part quality assessment across the balance sheet, income statement, and cash flow statement — then validated by the Fama-French five-factor model. The same framework drives both books of satellites: the large-cap quality book leads with cash-flow quality, while the small-cap value book leads with balance-sheet strength (debt/equity below 30%). The lending screen does more work than it appears, removing captive-finance arms, insurers, and hidden lending operations inside otherwise-clean names.

S1

Sin Screens

Excludes gambling, alcohol, war and ammunition. Applied at the business-model level — is this a primary activity, not a trace exposure.

S2

Lending Screen

Excludes banks, captive-finance arms (Caterpillar, Deere, Ford), insurers, Shopify Capital, PC Financial. Incidental interest on corporate cash is not excluded.

CF

Cash Flow Quality

Requires high operating cash flow with a track record of organic growth. Serial acquirers (Constellation Software, Couche-Tard) fail even if ethics screens pass. Source: SEC EDGAR / SEDAR+.

BS

Balance Sheet Quality

Screens for financial strength and capital discipline — low financial leverage, strong interest coverage, conservative debt maturity profiles, and minimal off-balance-sheet exposure. Favours asset-light models with durable equity bases.

IS

Income Statement Quality

Examines revenue quality, margin durability, and earnings consistency. Prefers recurring-revenue and subscription models over transactional. Scrutinises non-GAAP adjustments and flags companies where reported earnings persistently diverge from operating cash flow.

FF5

Factor Validation

Fama-French 5-factor OLS regression tests whether each book's factor exposures align with its mandate. The large-cap book shows a positive RMW (profitability) loading; the small-cap book shows a significant positive SMB (size) loading, with a weaker value tilt. Uses Kenneth French Data Library (Dartmouth).

Not investment advice. All research published here is for informational and educational purposes only. It reflects my own independent analysis and does not constitute a recommendation to buy, sell, or hold any security. Past factor loadings and cash-flow trends do not guarantee future performance. Verify all figures against primary filings (SEC EDGAR, SEDAR+) before making any investment decision. Consult a licensed financial advisor.

Get in Touch

Interested in the research, the methodology, or collaborating on a project? I'd welcome the conversation.