Large Cap Value Managed Account

Defensive-minded specialists aiming to identify undervalued large-cap opportunities

Overview

ABOUT THIS PORTFOLIO

As defensive value specialists, we look to invest in high-quality companies with strong management teams, stable balance sheets and durable competitive advantages that are trading at attractive valuations. We seek to achieve excess returns over full market cycles, with less risk than our benchmark and peers as measured by standard deviation, beta and down market capture.

WHY INVEST IN THIS PORTFOLIO

Attractive Reward/Risk
Our disciplined valuation process measures downside risk before upside potential and invests in securities with favorable reward/risk ratios.

High-Conviction Process
The portfolio typically holds between 40 to 60 stocks with business fundamentals considered more important than fluctuations in the wider economy.

Different Than the Benchmark
The benchmark is not used as a starting point for portfolio construction, which should lead to high active share.

PORTFOLIO MANAGEMENT

Kevin Preloger

Portfolio Manager

Industry since 1997. Joined Firm in 2002.

Performance

RETURNS (%) (As of 09/30/2019)
Composite Pure Gross* Composite Net Russell 1000® Value Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/2006)
Composite Pure Gross* 2.00% 19.52% 4.84% 9.80% 7.81% 10.56% 7.42%
Composite Net 1.25% 16.95% 1.78% 6.62% 4.68% 7.35% 4.30%
Russell 1000® Value Index 1.36% 17.81% 4.00% 9.43% 7.79% 11.46% 6.67%
RETURNS (%) (As of 09/30/2019)
Composite Pure Gross* Composite Net Russell 1000® Value Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/2006)
Composite Pure Gross* 2.00% 19.52% 4.84% 9.80% 7.81% 10.56% 7.42%
Composite Net 1.25% 16.95% 1.78% 6.62% 4.68% 7.35% 4.30%
Russell 1000® Value Index 1.36% 17.81% 4.00% 9.43% 7.79% 11.46% 6.67%

RETURNS-BASED STATISTICS (Composite As of 09/30/2019)

RISK / REWARD
VS. Russell 1000® Value Index
3YR 5YR
Information Ratio 0.14 0.01
Alpha 0.89 0.45
Tracking Error 2.60 2.67
Beta 0.94 0.94
R-squared (%) 95.60 94.98
UP/DOWN MARKET CAPTURE (%)
VS. Russell 1000® Value Index
3YR 5YR
Up Capture Ratio 95.81 96.18
Down Capture Ratio 91.03 94.51
STANDARD DEVIATION 3YR 5YR
Large Cap Value Managed Account 11.84 11.52
Russell 1000® Value Index 12.34 11.92
SHARPE RATIO 3YR 5YR
Large Cap Value Managed Account 0.70 0.60
Russell 1000® Value Index 0.64 0.57

Portfolio

Index represents the Russell 1000® Value Index.

(As of 10/31/2019)
% of Rep Account
US Bancorp 3.54
Berkshire Hathaway Inc 3.28
Evergy Inc 2.83
Pfizer Inc 2.68
Public Storage 2.60
Entergy Corp 2.58
Oracle Corp 2.58
Hartford Financial Services Group Inc 2.56
Johnson & Johnson 2.53
M&T Bank Corp 2.52
Total 27.70
View full holdings
Portfolio Characteristics (As of 10/31/2019)
  REP ACCOUNT INDEX
Number of Holdings
Equity Issues
57 766
Market Capitalization
Weighted Average
$107.25B $123.81B
Portfolio Turnover Rate
(1-year trailing)
48.48% -
Price/Earnings Ratio
(1-year forward)
17.47 18.04
Price/Book Ratio
(1-year forward)
3.33 2.38
Earnings Growth Rate
(1-year forward)
2.89% -0.03%

Sector Allocation % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 10/31/2019)
Financials 29.06 23.73
Health Care 11.76 12.65
Information Technology 8.65 6.12
Real Estate 7.90 5.53
Energy 7.62 8.08
Utilities 6.98 6.84
Industrials 6.61 9.63
Consumer Staples 6.21 8.99
Communication Services 5.79 8.19
Materials 3.62 4.25
Consumer Discretionary 1.76 5.99
Cash & Equivalents 4.04 -
Regional Allocations % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 10/31/2019)
North America 92.28 99.08
Europe 2.76 0.87
Africa/Mideast 0.92 -
Cash & Equivalents 4.04 -
MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS % OF REP ACCOUNT % OF INDEX % OF REP ACCOUNT % OF INDEX (As of 10/31/2019)
Over $100B 28.63 38.39
$50B to $100B 18.27 16.07
$10B to $50B 43.93 33.69
$5B to $10B 3.83 8.15
$1B to $5B 1.30 3.69
Developed VS Emerging Markets % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 10/31/2019)
U.S. 91.08 99.07
Non-U.S. Developed 4.88 0.90
Cash & Equivalents 4.04 -

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