The strategy invests in companies that we believe will gain a greater share of global GDP and that have long-term economic drivers that should serve as tailwinds for enduring growth. At the highest level, we categorize these structural themes into the rubric MANTRA: Mass Affluence, New Technology, Restructuring and Aging. Our sub-themes are concentrated in 21st century industries and favor intellectual property-based areas of the market.
Fundamental analysis guides our bottom-up approach to security selection. We invest in companies we believe have above-average earnings potential due to unique product offerings, typically protected by a patent, that are trading at levels that underestimate their long-term growth potential. Aimed to provide stability to the portfolio, we also use a barbell approach. Typically, 80% of the portfolio is comprised of high return potential positions and 20% is invested in more defensive positions, which are highly cash generative and blue chip in nature.
- Rigorous research seeks to uncover attractive risk/reward opportunities
- Liquidity, valuation and earnings growth help determine position sizes
- Confidence in company management
- Monitor portfolio positioning and active risk resulting from individual security selection
- Risk Group utilizes quantitative tools to identify factor and style exposure
Firm Level: Independent Risk Management Team
- Performs comprehensive portfolio reviews with investment team and senior management
- Monitors individual security holdings across the entire firm