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 06/30/2020)
Composite Pure Gross* Composite Net Russell 1000® Value Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/2006)
Composite Pure Gross* 13.06 -16.64 -9.55 1.52 4.59 9.55 6.07
Composite Net 12.26 -17.91 -12.22 -1.44 1.54 6.37 2.99
Russell 1000® Value Index 14.29 -16.26 -8.84 1.82 4.64 10.41 5.48
RETURNS (%) (As of 08/31/2020)
Composite Pure Gross* Composite Net Russell 1000® Value Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/2006)
Composite Pure Gross* 4.45 -11.78 -3.50 3.26 6.49 9.99 6.43
Composite Net 3.69 -13.54 -6.33 0.24 3.39 6.80 3.34
Russell 1000® Value Index 7.53 -9.35 0.84 4.50 7.53 11.05 6.01

RETURNS-BASED STATISTICS (Composite As of 06/30/2020)

RISK / REWARD
VS. Russell 1000® Value Index
3YR 5YR
Information Ratio -0.12 -0.02
Alpha -0.26 0.14
Tracking Error 2.52 2.62
Beta 0.96 0.95
R-squared (%) 98.10 97.23
UP/DOWN MARKET CAPTURE (%)
VS. Russell 1000® Value Index
3YR 5YR
Up Capture Ratio 95.13 96.17
Down Capture Ratio 97.00 96.24
STANDARD DEVIATION 3YR 5YR
Large Cap Value Managed Account 17.59 15.13
Russell 1000® Value Index 18.09 15.65
SHARPE RATIO 3YR 5YR
Large Cap Value Managed Account -0.01 0.23
Russell 1000® Value Index 0.01 0.22

Portfolio

Index represents the Russell 1000® Value Index.

Top Holdings (As of 08/31/2020)
% of Rep Account
Berkshire Hathaway Inc 3.47
Johnson & Johnson 3.13
Pfizer Inc 2.86
Public Storage 2.68
Evergy Inc 2.67
US Bancorp 2.45
Alliant Energy Corp 2.43
Hartford Financial Services Group Inc 2.39
Oracle Corp 2.38
DuPont de Nemours Inc 2.34
Total 26.80
View full holdings
Portfolio Characteristics (As of 08/31/2020)
  REP ACCOUNT INDEX
Number of Holdings
Equity Issues
61 836
Market Capitalization
Weighted Average
$96.70B $127.39B
Portfolio Turnover Rate
(1-year trailing)
48.62% -
Price/Earnings Ratio
(1-year forward)
19.63 24.46
Price/Book Ratio
(1-year forward)
3.55 3.07
Earnings Growth Rate
(1-year forward)
-15.32% -17.37%
Sector Allocation % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 08/31/2020)
Financials 25.42 18.45
Health Care 13.76 14.24
Information Technology 13.07 9.53
Industrials 8.39 12.81
Utilities 7.31 5.75
Materials 6.57 4.62
Real Estate 6.34 4.61
Communication Services 5.20 9.64
Consumer Staples 5.02 8.37
Energy 3.41 4.56
Consumer Discretionary 1.54 7.42
Cash & Equivalents 3.97 -
Regional Allocations % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 08/31/2020)
North America 93.04 98.86
Africa/Mideast 2.02 -
Europe 0.97 0.94
Cash & Equivalents 3.97 -
MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS % OF REP ACCOUNT % OF INDEX % OF REP ACCOUNT % OF INDEX (As of 08/31/2020)
Over $100B 30.05 38.06
$50B to $100B 13.01 19.05
$10B to $50B 48.66 31.48
$5B to $10B 4.31 7.76
Developed VS Emerging Markets % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 08/31/2020)
U.S. 91.70 98.87
Non-U.S. Developed 4.33 0.95
Cash & Equivalents 3.97 -

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