The Columbia Focused Large Cap Value team seeks to invest in a concentrated portfolio of undervalued companies with improving fundamentals. Value is broadly defined as price-to-earnings levels below the general market. The underlying belief is that over time the stock market rewards these types of companies.
Investment candidates generally have market capitalization in the range of companies in the Russell 2000 Value Index and P/E multiples below the market, industry, or the company's historical P/E multiple. Candidates will also have a specifically-defined catalyst for earnings acceleration, which may include new management, restructuring, a change in their business cycle, or changing industry fundamentals. Fundamental analysis seeks to identify the trajectory of the company and its stock 24 months out. The team’s goal is to anticipate change early and allow sufficient time for a company to improve.
The portfolio is composed of 30 – 40 stocks with a maximum individual position size of 5% at the time of purchase - positions are generally trimmed back when they reach 7% of the total market value of the portfolio.
Benchmark: Russell 1000 Value Index
Portfolio parameters are internal guidelines used by the investment team and are subject to change without notice. Formal investment parameters are set forth in the offering documents or investment management agreement.