Investment Process
We believe superior long-term performance with lower volatility may be achieved by investing in companies:

Undervalued by the market

Exhibiting compelling fundamentals

Exhibiting a catalyst for change

The Large Cap Value Equity management team uses fundamental research to identify companies that exhibit:

Compelling fundamentals, such as improving profitability and shareholder-oriented management.

Undervaluation, signified by a large spread between market and fair value and attractiveness relative to historical valuation measures.

An identifiable catalyst that could close the valuation gap between market and fair value over the subsequent one- to two-year period.

Portfolio Focus
The management team builds a portfolio typically containing 50 to 70 stocks using:

Internally generated fundamental research

Positions built to a maximum of 3.5%, but sometimes held to 5.0%

Sector weightings to maintain diversification

Our team sells securities when they exhibit:

Deteriorating business outlook

Full valuation

Loss of catalyst

Extraordinary price movement

Position exceeding maximum 5%

Our portfolios remain fully invested under normal market conditions and our process provides a 360° risk review.

Risk Management
Aside from guiding our efforts to deliver positive performance in up markets, our disciplined investment process – specifically our strict sell discipline – helps limit downside risk. We also manage risk by being fully diversified across all sectors and continuously monitoring individual issues and sector parameters.