Relative Value Equity

Relative Value Equity is our flagship large cap product. We have been managing our clients' equity assets since 1967. Since that time, the process has evolved and become very refined. 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.

Using an intrinsic value approach, we determine the current value of the projected future cash flows. This discounted value is then measured against the securities current price giving us the ratio. We then determine the securities we believe have the greatest opportunity for reward relative to all viable alternatives. Individual securities, industry sectors, and complete market indices can be evaluated utilizing this methodology.

We screen for securities that possess a market capitalization of $5 billion and above, extraordinary quality in the balance sheet and income statement, exceptional internal management, and a catalyst 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 tend to hold, on average, 50 positions balanced across multiple industry sectors. We modify the sector weightings against the S&P 500. Our portfolio team maintains an active database of 4,500 securities that are subjected to this methodology and reviewed regularly for purchase or sale candidates.

RVE Full Description
RVE Investment Process
RVE Characteristics
RVE Performance
RVE Product Summary
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