Value Equity

Overview

The Value Equity strategy seeks to outperform the Russell 1000 Value index by constructing a diversified portfolio utilizing an investment process that combines an analysis of top-down economic and market forces with fundamental bottom-up stock research and rigorous risk management. We are patient, contrarian, long-term investors, whose process is driven by a relentless search for value opportunities. Our goal is to achieve attractive risk-adjusted returns over investment market cycle by outperforming the index while assuming less risk.

Investment Philosophy

FUNDAMENTAL – BASED INVESTING
Fundamental analysis can identify undervalued companies with low expectations whose earning potential and assets are being temporarily mispriced by the market due to change, controversy, neglect, complexity or misunderstanding.

CONTRARIAN BIAS
We are patient, contrarian, long-term investors who evaluate companies over an entire 3- to 5- year business cycle. Stocks are purchased at significant discounts to estimated intrinsic value based on normalized earnings power, free cash flow, net asset value, returns on invested capital, and private market values.

EMPHASIZE RISK MANAGEMENT
Seek to identify business risk, balance sheet risk and valuation risk in current and potential holdings to avoid permanent impairment of capital. Such impairment can occur with companies in a secular decline, or those with balance sheet vulnerability and a flawed risk/reward profile.