The International Equity strategy is sub-advised by Polaris Capital Management, LLC.
- Disciplined investment approach to international securities
- Individual Company Valuation and Fundamental Analysis
- Utilize proprietary investment technology to identify the best security values, most undervalued industries and the most undervalued countries
- Long-term investment horizon with low turnover
Investment Process
Our objective in international investing is to identify the best values in the world using a disciplined bottom-up value approach, encompassing proprietary investment technology and in-depth fundamental research. We seek superior returns while maintaining a focus on absolute risk. Our underlying investment philosophy is grounded in two basic beliefs:
- Companies exist to generate cash flow for owners
- Superior returns can be generated by purchasing the most undervalued streams of “free” cash flow
Securities are screened based on an underlying belief that normal security price fluctuations can undervalue the cash flow or assets of a company. Using proprietary valuation criteria, the management team regularly screens a global universe of approximately 24,000 companies to produce a list of 300-500 companies with the greatest potential for undervalued streams of sustainable cash flow or assets, regardless of industry or location.
Intensive fundamental research is applied to each strong buy candidate identified in the screening process. Portfolio managers conduct thorough financial analysis of companies; research respective suppliers, customers and competitors; and either visit or contact company management.
The investment team uses a proprietary Multi-factor Global Valuation Model as a follow up measure to initial screening and fundamental analysis of potential investments. The model provides a matrix for finding the best values in the world and identifies the most undervalued industries in the most undervalued countries, reducing the chance of overlooking potential investment opportunities.
The portfolio is monitored continuously: country, industry and database valuation screenings are repeated monthly and fundamental research is ongoing along with daily reviews of news, research and company results.