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Can a stock screen identify a great CEO?

Traders work at the Coty booth on the floor of the New York Stock Exchange.
Jin Lee | Bloomberg | Getty Images
Traders work at the Coty booth on the floor of the New York Stock Exchange.

The best investors such as Warren Buffett espouse the importance of management quality in finding great long-term investments.

But how do investors find such CEOs?

Fundstrat's George Gianarikas believes he found the answer.

The firm inaugurated the "Captain Ahab" investment strategy earlier this month , which seeks to find the managers who will create the most value for shareholders, a characteristic long thought to be intangible.

With Gianarikas' quantitative method, investors can theoretically identify good managers without meeting them and shaking their hands, as Buffett would do.

The strategist does this by first searching for executive managers whose stocks outperformed the S&P 500, as well as industry peers, for a considerable time. But then, he whittles down this list by finding the managers who achieved this outperformance with more than two different companies, making this quite an elite group.

Here is the updated club membership and the new stock Fundstrat recommends based on the strategy.

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