Comprehensive Risk Analysis & Expert Insights
The Equity Team focuses on the security selection and risk management components of our individual equity strategies. We offer U.S. large cap core, dividend income, sustainable investing, and U.S. All Cap strategies.
The primary objective of our research process is to identify industry leaders with secular growth opportunities or catalysts for improved growth trading at reasonable valuations relative to their peers. The process is designed so that security selection and not sector allocation or industry concentration is the primary driver of performance over long-term periods.
Our strategies exhibit a high-quality bias, are fairly concentrated (30-50 holdings), and have low turnover. We focus on quality through the lenses of balance sheet strength, full-cycle profitability, cash flow-based valuation, and business model durability.
Additionally, we assess the industry competition landscape, management experience, corporate governance policies, supplier concentration, customer concentration, and supply chain risks for all of our portfolio holdings and candidates.
The equity team regularly reviews the historical and expected impact of macroeconomic variables including interest rates, currency valuations, and oil prices on the strategies. The team also regularly reviews the portfolio’s exposures to style factors including style, size, beta, leverage, quality, momentum and value.
Our enhanced risk management process monitors and evaluates each individual holding’s contribution to the strategy’s expected tracking error versus its benchmark. We evaluate both idiosyncratic security-level risk exposures and style factor-based risk exposures.
We partner with the Morningstar’s Equity Research Service for access to industry and company experts, who help our Equity Team evaluate the prospects and risks for current holdings and candidates on an ongoing basis.nt components of our individual equity strategies. We offer U.S. large cap core, dividend income, sustainable investing, and U.S. All Cap strategies.
Quality Focus
Security selection is the primary driver of performance, not sector allocation or industry concentration.
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