International Intrinsic Value

The International Intrinsic Value strategy is a direct extension of our Price to Intrinsic Value methodology and has been in place since October 2005. It is a long only portfolio that contains approximately 70-85 names balanced across multiple countries and industry sectors. The portfolio limits purchase of securities to those with market capitalization of $1 billion or greater and are traded on the U.S. exchanges (ADR's). The strategy follows the same basic disciplines as our domestic large cap intrinsic value product. Incorporating a strict sell discipline as well as a buy side methodology, we are able to identify securities selling at significant discounts or premiums to their current intrinsic value.

We screen for stocks that possess a market capitalization of $1 billion and above, global diversification, extraordinary quality in the balance sheet and income statement, exceptional internal management, and a fundamental prospect that can force recognition by the market of the intrinsic value. Utilizing both quantitative and qualitative detailed fundamental research, we are able to create a portfolio that seeks to replicate these qualities. We can also allocate up to 20% of the portfolio in emerging countries. We limit our sector and region weightings to +/- 10% versus the MSCI EAFE. The top 10 positions will average 20-30% of the portfolio's assets, with turnover between 20-45%.

Performance Disclosure International
Download Document

International Intrinsic Value Annual Verification 2010
Download Document