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Investment Approach

Seeks to outperform Russell 1000 benchmark and rank consistently in the top quartile of the large-cap core universe.

Distinguishing Features

  • Distinct contrarian investment philosophy backed by a disciplined process that is based on the fundamental belief that the best investment opportunities can be found where the market displays an inordinate amount of pessimism
  • The strategy has had a historically strong risk/reward profile
  • The team of four experienced portfolio managers is assisted by a highly-talented group of fundamental and quantitative analysts

Investment Process

Define and evaluate investable universe

Prioritize candidates for further research

  • Begin with stocks primarily found in the Russell 1000 Index with market caps greater than $2 billion
  • Screen for stocks using a proprietary method that seeks to identify value or growth stocks that have fallen out of favor
  • Assess the stocks found by the screen and determine whether the problems are being caused by transitory factors or by negative secular headwinds
Conduct research and valuation analysis

Intensify research efforts on selected candidates

  • Tap various information and alpha sources, including centralized fundamental research, quantitative research and portfolio management teams to gain valuable perspectives on potential candidates
  • Evaluate companies based on rigorous bottom-up research
  • Research will derive one of three investment thesis outcomes: Investment has merit, market is efficient or thesis yet to be determined
Construct portfolio and manage risk

Weigh potential for appreciation against downside risk of individual stocks to build a portfolio that seeks above-average returns while balancing risk and reward

  • Price target established and thesis documented at purchase
  • Bottom-up stock selection drives sector/industry weights
  • Continuously monitor price targets and company fundamentals to determine if original thesis remains