• Unique, high alpha strategy
• Bottom-up, research driven investment process
• Explicit focus on change to identify opportunities
• Concentrated portfolio reflecting our ten best ideas

Investment Process
The Concentrated Large Cap Value strategy invests in the ten best ideas identified within the Large Cap Value portfolio. This unique, high alpha strategy seeks superior returns through a bottom-up, research driven process and leverages the experience and creativity of our investment team. We believe that most great stock ideas are diluted in a larger portfolio and that while reward does not come without risks, the rewards of a concentrated portfolio can be substantial.

Our best ideas are typically characterized by low valuation, significant change (whether a new product or new management or new opportunities), and timeliness. To be one of our ten best ideas, a company must be ready to reap the benefits of the change taking place sooner rather than later.

We gain a solid understanding of underlying changes in an organization through fundamental analysis, an integral part of our selection process. Portfolio managers seek improvements in fundamentals that are both meaningful and sustainable and evaluate each potential investment in light of the economic, social and political environment.

The universe for the concentrated portfolio is the companies we have identified for the diversified Large Cap Value portfolio. We focus on stocks over $1 billion in market capitalization.

The Large Cap Value portfolio identifies opportunities through both a quantitative model and through the in-depth knowledge of each member of our Value team. Our proprietary price target model tracks price and earnings data on the more closely followed 700 companies within our universe, and serves as another source of examining potentially undervalued stocks.

Our most effective means for gaining insight into value stocks is our team structure. Portfolio managers on our value team average 20 years of investment experience. Each manager focuses on research and identifying opportunities within their covered sectors while also managing the portfolio as a team from a broader perspective.

Our sell discipline in the Concentrated Value Portfolio is simple. If a company is no longer one of our ten best ideas, it is sold and replace by a company that does make that list.