The US Mid Cap Value Equity strategy is a traditional/relative value strategy that always stays in the correct style box. The team’s edge is its focus on cash flow and capital deployment. The team incorporates the concept of capital deployment in its analysis and invests in companies that have high-quality management teams focused on returning cash to shareholders.
Experience
Stocks are selected by an experienced, value-focused team of sector specialists, averaging 15+ years of industry experience
Cash-flow focus
Focus on companies’ ability to effectively deploy and generate sustainable free-cash flow
Consistency
Disciplined investment process with a focus on risk mitigation that has been consistently applied for more than 20 years
Intensive, fundamental, bottom-up research process seeks to identify companies that offer superior expected returns based on the company’s ability to generate sustainable free cash flow.
Companies with higher free cash flow yields have the potential to outperform counterparts with lower free cash flow yields and may be better positioned to provide downside protection in times of economic stress.
Risk management is ingrained in each step of the process to preserve and grow investors’ capital.
Free cash flow is at the heart of the strategy’s traditional value investing process, driving investment ideas and research. Investments undergo thorough financial scrutiny with a cash flow focus to ensure portfolio alignment.
Portfolio construction is driven by bottom-up stock selection targeting the team’s best investment ideas. Barra factor monitoring and economic analysis seek to ensure prudent exposure management across market cycles.
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Risk Disclosures
Investing involves risk, including the possible loss of principal.
Investments in small and/or mid-cap companies may be more volatile than those of larger companies.
Investing in the real estate industry includes risks such as declines in real estate value, lack of availability of mortgage funds, overbuilding, extended vacancies, increases in property taxes, changes in zoning laws, costs from clean-up of environmental problems, uninsured damages, variations in rents, and changes in interest rates. The value of an investment in a real estate investment trust (REIT) may be adversely affected by various factors, including interest rate changes, changes in property values, changes in dividend payments, loss of the REIT's ability to qualify for pass-through tax treatment under federal tax laws, or the REIT's failure to maintain its exemption from registration as an investment company.
International investing (particularly in emerging markets) may be adversely affected by political instability; changes in currency exchange rates; inefficient markets and higher transaction costs; foreign economic conditions; the imposition of economic or trade sanctions; or inadequate or different regulatory and accounting standards. Investing in emerging markets involves greater risk than investing in more developed foreign markets because, among other things, emerging markets may have less stable political and economic environments, information about issuers may be less available or of a lesser quality, and securities markets may be smaller, less liquid, and subject to greater price volatility.
Securities in the energy sector may be subject to price fluctuations due to various factors including real and perceived inflationary trends and political developments, the cost assumed in complying with environmental safety regulations, demand of energy fuels, energy conservation, the success of exploration projects, and governmental regulations.
High portfolio turnover rates may increase transaction costs and lower returns.
Diversification may not protect against market risk.
A "value stock" is a stock that is believed to be undervalued. Investments in value stocks are subject to the risk that the stocks are appropriately valued or that the stocks may decline in value.
Market risk is the risk that all or a majority of the securities in a certain market — like the stock market or bond market — will decline in value because of factors such as adverse political or economic conditions, future expectations, investor confidence, or heavy institutional selling.
Government and regulatory risk is the risk that governments or regulatory authorities may take actions that could adversely affect various sectors of the securities markets and affect fund performance.
Liquidity risk is the possibility that securities cannot be readily sold within seven calendar days at approximately the price at which a portfolio has valued them. To the extent that a portfolio holds fixed income securities in smaller “odd lot” sizes, such positions may be less liquid and harder to sell. Odd lots may trade at lower prices than institutional round lot sizes, which may affect a portfolio’s ability to accurately value its investments.
Equity securities are subject to price fluctuation and possible loss of principal.
Issuers in the information technology sector may be impacted by intense competition; dramatic and often unpredictable changes in growth rates and competition for qualified personnel; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.
Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.
All third-party marks cited are the property of their respective owners.
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Investing involves risk including the possible loss of principal. The investment capabilities described in this website involve risks due, among other things, to the nature of the underlying investments. All examples herein are for illustrative purposes only and there can be no assurance that any particular investment objective will be realized or any investment strategy seeking to achieve such objective will be successful. Past performance is not a reliable indication of future performance.
Before acting on any information, you should consider the appropriateness of it having regard to your particular objectives, financial situation and needs and seek advice.
The fund or strategy is subject to liquidity risk, which is the risk that the fund or strategy’s investments cannot be readily sold within seven calendar days at approximately the price at which the fund or strategy has valued them.