Institutional Strategies

Large Cap Value Concentrated

The strategy seeks to own a concentrated portfolio of high quality, undervalued U.S. stocks with relatively high dividend yield and cash flow flexibility, which the team believes can provide superior risk-adjusted returns. 

Investment Philosophy

We believe by owning high quality, undervalued U.S. stocks with relatively high dividend yield and cash flow flexibility, we can provide superior risk-adjusted returns.

Investment Process

The strategy seeks to provide superior risk-adjusted returns primarily through capital appreciation with a secondary objective of provided current income. The investment process consists of three phases. First, within the Russell 1000 Index universe, the portfolio management team screens for stocks that reside in the second and third highest decile of dividend yield. History shows that companies located in the second and third highest decile in terms of dividend yield offer an attractive risk/reward profile in the large cap universe. The team then narrows the initial investment universe down to a smaller, more manageable subset of stocks based on their screen for quality which allows for more efficient fundamental research coverage. They rank the remaining stocks based on low valuation, high quality, and dividend growth potential. The last step is the fundamental analysis of cash flow, balance sheet, and competitive positioning.

LCV chart

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Key Features

Composite Performance History Since 11/01/2016
Benchmark Russell 1000 Value Index
Security Concentration Typically holds 15–25 stocks
Turnover Range About 150%
Sector Ranges Each GICS limited to +/- 8%
Position Size Approximately 4–5%
Cash Allocation Less than 5%
Investment Vehicles Institutional Separate Account