Kornitzer Capital Management (KCM) establishes core holdings in industries they believe stand to benefit from favorable long-term trends such as changes in demographics, consumer habits and technology. The firm employs proprietary research to identify reasonably priced companies. They may use a balanced approach or follow a specific investment style, such as fixed income, value, or growth. For fixed income portfolios they consider investment grade securities, non-investment grade securities, and municipal bonds. Value and growth investment styles use primarily equity securities, issued by companies of all market sizes, which may be classified as large cap, mid cap, small cap, or micro cap. In certain instances, KCM may invest in certain defined investment segments, such as technology and international. The Kornitzer Private Client Services' (KPCS) value approach is a bottom-up discipline that focuses on the full range of market capitalizations. The core of the portfolio consists of high quality, financially secure companies that are trading below their estimated intrinsic value, while the remaining holdings frequently take an opportunistic approach toward under-followed and out-of-favor companies. The strategy focuses on long-term capital appreciation, as well as capital preservation. Risk is controlled by investing in a broad number of companies, across various industries which have the ability to generate strong cash flow, and by investing in securities that have low expectations and/or are underfollowed by Wall Street.KPCS’s growth approach is driven by a top-down perspective that identifies long-term secular trends. In-depth fundamental research is conducted on those companies that are expected to benefit from those trends. The approach typically leads to companies that are growing revenues faster than GDP, financially strong and attractively valued, both relative to the market and historically. KPCS's growth approach focuses on long-term capital appreciation. Risk is controlled by investing in a broad number of companies, across various industries, which have strong balance sheets and the ability to generate free cash flow.KPCS's fixed income approach involves intensive credit analysis and focuses on high current income. A typical fixed income portfolio combines investment grade and high yield bonds with convertible securities. Portfolios usually consist of core holdings in industries with favorable long-term economic trends and are supplemented with out-of-favor holdings discovered through contrarian research.