Total Return Value Strategy

• Concentrated positions allow us to profit from the ability to assume prudent idiosyncratic risk
• Long-term investment horizon accommodates the full development of value-creating strategies
• Operational engagement provides a distinct information advantage and may catalyze change when necessary

Allocation: Equity and fixed income, with allocation determined by account owner’s investment objective.

Strategy Description: The Total Return Value Strategy is based on value-oriented investment principles that view equity securities as fractional ownership interests in operating enterprises. Securities included in the portfolio are often overlooked or undervalued by market participants for reasons we believe are temporary or unfounded. Rigorous financial statement analysis underpins the investment research process and provides critical context to understand qualitative analytical considerations. Catalysts for price appreciation are expected to be idiosyncratic; as such, we emphasize the analysis of an issuer’s long-term strategy, management quality, and capital allocation priorities. Regular dialogue with company senior management both before and throughout our investment ownership period is of particular importance. “Operational engagement” provides a distinct information advantage while allowing us to accelerate value-creation initiatives if necessary.

Portfolio Construction: Fully invested portfolios hold concentrated equity and/or debt positions according to each account’s investment mandate. Equity positions span market capitalization levels, economic sectors, and geographies; debt positions are limited to corporate and US Treasury securities that may be investment-grade or non-investment-grade. We have a long-term investment horizon. Trading occurs infrequently, and turnover is expected to be low.

Strategy Literature

Q2 2024 Fact Sheet

Q2 2024 Commentary

2023 GIPS Presentation