Contrarian Core Strategy

Overview

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 portfolio manager is assisted by a highly-talented group of fundamental and quantitative analysts

Investment Process

Define and evaluate investable universe

When constructing portfolios we:

  • 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
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Guy Pope, CFA

24 years experience
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Harvey Liu, CFA

21 years experience
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Michael Welter, CFA

19 years experience
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J. Nicholas Smith, CFA

12 years experience

Literature

Literature

Document
Fact Sheet

Disclosures

There is no guarantee the objective will be achieved or that any return expectations will be met.

The Russell 1000 Index tracks the performance of 1,000 of the largest U.S. companies, based on market capitalization. It is not possible to invest directly in an index.

Investment risks — Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. International investing involves certain risks and volatility due to potential political, economic or currency instabilities and different financial and accounting standards. Investments in a limited number of companies subject the portfolio to greater risk of loss.

Advisory services provided by Columbia Management Capital Advisers, an operating division of Columbia Management Investment Advisers, LLC (“CMIA”) an SEC-registered investment adviser that offers investment management and related services to clients participating in various types of wrap programs.

Columbia Management Investment Advisers, LLC and its affiliates do not offer tax advice. Investors should consult with their tax advisor regarding their specific situation.

These managed account solutions are only available through investment professionals. Not all strategies may be available on all platforms, and fees and terms may vary. Managed account programs may require a minimum asset level and may not be suitable for all investors.