Our equity portfolios are managed using a value-oriented investment philosophy.  Portfolios are typically concentrated in 30 to 50 stocks which are diversified across industries and sectors.  Each portfolio is individually managed using an active buy-and-hold approach.  We use market volatility to opportunistically buy and sell over time.  Our discipline of making long-term investments in high-quality companies reduces portfolio turnover.  As a result, our equity portfolios typically experience less than 25% annual turnover.

Investments we find attractive share many of the same qualities.  These companies, whether small, mid-sized or large, typically have:

    • Competitive advantages, such as barriers to entry or economies of scale;
    • Strong management teams that have demonstrated consistent leadership;
    • Superior growth prospects through internal or external opportunities;
    • Sound fundamentals, including manageable debt balances and strong cash flows; and
    • Attractive valuations based upon relative and absolute valuation methodologies.

Our equity products are designed for a broad range of investment objectives.  We offer small cap value, mid cap value, and large cap value strategies for investors seeking long-term capital appreciation with varying degrees of risk tolerance.  Often, these strategies are combined to provide All Cap Value portfolios or Focused Value portfolios of small and mid-cap stocks.

Small Cap Value

Investments are concentrated in companies with market capitalizations of less than $2 billion.  A significant portion of the investments are in companies whose market capitalizations are less than $500 million, which are often referred to as “micro cap stocks.”

Our investment strategy seeks to identify companies with the following characteristics:

    • Dominant players in niche industries;
    • Strong balance sheets and access to capital markets;
    • Significant near-term and long-term growth opportunities;
    • Market price trading at a 30% or greater margin of safety (or ‘discount’) to intrinsic value;
    • Identifiable near-term catalysts for stock price appreciation; and
    • Under-covered by Wall Street analysts.

This strategy is best suited for long-term investors who are able to endure the above-average volatility associated with small cap stocks, which tend to be more sensitive to market changes.

Mid Cap Value

Investments are concentrated in medium-sized companies with market capitalizations between $2 billion and $20 billion.

Our investment strategy seeks to identify companies with the following characteristics:

    • Dominant players in medium-sized industries, or niche players in global industries;
    • Strong balance sheets and access to capital markets;
    • Significant near-term and long-term growth opportunities;
    • Market price trading at a 30% or greater margin of safety (or ‘discount’) to intrinsic value; and
    • Identifiable near-term catalysts for stock price appreciation.

This strategy is best suited for moderately aggressive long-term investors.

Large Cap Value

Investments are concentrated in blue-chip companies with market capitalizations exceeding $20 billion.

Our investment strategy seeks to identify companies with the following characteristics:

    • Dominant players in global industries;
    • Strong balance sheets and access to capital markets;
    • Favorable long-term growth opportunities;
    • Market price trading at a 15% or greater margin of safety (or ‘discount’) to intrinsic value; and
    • Stable stock prices, enhanced by dividends.

This strategy is best suited for more conservative long-term investors who seek below-average volatility.

Investing in securities involves risk of loss that clients should be prepared to bear. Click here for a description of specific risks related to our investment strategies.