Overview & Approach
The Large Cap Value strategy’s primary objective is to outperform in every market environment. Our disciplined process is both adaptive and responsive to investor demand. Pete Cahill, our CIO and the portfolio manager for the Large Cap Value strategy combines quantitative technique, fundamental analysis and common sense to construct a well diversified portfolio of large cap companies designed to beat the market and the large cap value peer group.
The process begins with a robust quantitative model that seeks to identify companies or stocks that exhibit strong fundamental characteristics and attractive valuations. Through extensive research, Pete and his associate, John Pearce have constructed the stock selection model to include several factors expected to drive investment returns. These factors are dynamically weighted to respond to investor demand. The model recognizes that stock prices will react independently for businesses in different industries and economic sectors. Each stock in the model is assigned a numerical rating with the highest rated stocks added to the portfolio. The team will conduct an additional level of fundamental analysis before adding the stock to the portfolio. This final piece of the process ensures integrity.
Managing and maintaining the portfolio is a daily exercise. Consistency comes from adherence to the process. Pete and his team review the model to ensure the portfolio is always best positioned to outperform. Stocks or portfolio holdings that have slipped to a lower rating are closely reviewed and are typically sold from the portfolio. On a rare occasion, there is information in a stock that may not be accurately reflected in the model. There is certainly room for common sense and experience throughout the portfolio management process. Pete is an ardent believer in constant improvement.
|Large Cap Value Equity|
|Benchmark||Russell 1000 Value Index|