Equity Strategies
Our investment philosophy is a bottom-up, fundamental approach that seeks to generate above average risk-adjusted returns over the long-term by identifying businesses that possess substantial competitive advantages and that are trading at discounts to intrinsic value. Additionally these businesses typically generate free cash flow and are led by management teams that are true stewards for creating shareholder wealth.
The investment process focuses on managing risk, which we define as the probability of a permanent loss of capital, by owning quality businesses at attractive valuations. This approach strives to protect investors on the downside while providing upside potential. Over the long-term, our investment process seeks to generate above average risk-adjusted returns.
The Large Cap Value portfolio is focused on seasoned businesses that generally have capitalizations above $10 billion. These businesses are selected using a bottom-up, fundamental research process that seeks to identify individual businesses that possess substantial competitive advantages and that are trading at discounts to intrinsic value. The portfolio typically is comprised of 25-30 holdings and is expected to result in low to moderate turnover. The portfolio is suitable for clients whose primary objective is capital appreciation and whose secondary objective is dividend income.
The Small Cap Value portfolio is focused on smaller and generally less seasoned businesses that have capitalizations below $3 billion. These businesses are selected using a bottom-up, fundamental research process that seeks to identify individual businesses that possess competitive advantages and that are trading at substantial discounts to intrinsic value. The portfolio typically is comprised of 30-35 holdings and is expected to result in low to moderate turnover. The portfolio is suitable for clients whose primary objective is capital appreciation.
The Equity Income portfolio is focused on businesses that range in market capitalization and collectively generate an above average stream of dividend income, while also providing for capital appreciation potential. The businesses are selected using a bottom-up, fundamental research process that seeks to identify individual businesses that have the ability to either pay a high level of dividend income or grow the dividend stream over time. The portfolio typically is comprised of 30-35 holdings and is expected to result in low to moderate turnover. The portfolio is suitable for clients seeking total return from dividend income and capital appreciation.
The Increasing Dividend Equity Account (IDEA) is focused on high quality companies with long track records of distributing earnings to shareholders through dividends. The portfolio is selected from a universe of stocks meeting minimum criteria of paying and increasing dividends over the last 10 years. The portfolio typically is comprised of approximately 50 holdings and is expected to result in low to moderate turnover. The portfolio is suitable for clients seeking total return from dividend income and capital appreciation.
The Value Opportunities portfolio is a concentrated portfolio of businesses that range in market capitalization. The businesses are selected using a bottom-up, fundamental research process that seeks to identify individual businesses which are trading at substantial discounts to intrinsic value and that have a near-term catalyst in which to unlock the value. The portfolio may have concentrations in both individual holdings and/or industries. The portfolio typically is comprised of 8-12 holdings and is expected to result in turnover of 75-100%. The portfolio is suitable for clients seeking an aggressive approach to generating capital appreciation.
The All Cap Value portfolio is focused on businesses of all capitalization and will primarily be a blend of our Large Cap Value and Small Cap Value portfolios. These businesses are selected using a bottom-up, fundamental research process that seeks to identify individual businesses that possess substantial competitive advantages and that are trading at discounts to intrinsic value. The portfolio typically is comprised of 30-35 holdings and is expected to result in low to moderate turnover. The portfolio is suitable for clients whose primary objective is capital appreciation and whose secondary objective is dividend income.