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Overview

The investment approach traces back over 25 years and, except for technological advances and organizational changes, has been applied in a similar fashion over that time-period. The Contrarian Large Cap Core team blends a disciplined process for identifying mispriced stocks with traditional fundamental research. The resulting portfolio seeks to demonstrate benchmark-like characteristics, such as r2 and beta near 1.00, while generating positive alpha.

Investment Process

The universe largely comprises stocks within the Russell 1000 index with market capitalizations greater than $2 billion. A quantitative screen is used to identify stocks that have experienced recent abnormal price declines. Further research seeks to determine whether the problems are being caused by transitory factors or by longer-term secular trends.

Stocks that are deemed to be experiencing temporary price drawdowns are scrutinized as potential investments. Research sources include: Columbia Threadneedle's centralized fundamental research team, quantitative research team and other portfolio management teams. Research will result in one of three outcomes: the investment has merit, the market is efficient, or thesis yet to be determined.

Buy candidates are evaluated on the basis of potential for appreciation versus downside risk; a price target is established and its thesis documented at purchase. The bottom-up stock selection process drives sector/industry portfolio weights. The investment team continuously monitor price targets and company fundamentals to determine if the original thesis remains.

Portfolio Benchmark: Russell 1000 Index; S&P 500 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.