DISCIPLINED EQUITY

ACTIVE, VALUE-ADDED STRATEGIES

The investment process behind our Disciplined Equity suite of strategies is built upon the following core tenets:

Active management works

However, no static discipline works for all market segments or under all market conditions.

Definable market segments should be evaluated independently

Definable market segments – such as large cap growth or technology – have distinct dynamics. Therefore, each stock should be evaluated relative to its relevant peer groups to yield more accurate composite return expectations.

A spectrum of stock selection criteria is critical

Stock returns are driven by a variety of factors. Therefore, a diverse set of valuation metrics need to be considered for more robust return expectations and more consistent results.

Factor weights should be dynamic

Individual valuation metrics exhibit variation in their ability to forecast returns through time. Thus, factor weights should be systematically adapted to evolving patterns of effectiveness.

Optimization is the best way to construct portfolios

Careful portfolio construction goes hand-in-hand with individual stock selection. Therefore, return expectations must be captured as active portfolio risk, whereas unintended active risks should be minimized.

Slogan: 
ACTIVE, VALUE-ADDED STRATEGIES