Large Cap Focused Equity Strategy

The strategy places a priority on protecting against the permanent loss of capital while seeking to outperform the S&P 500 Index over a full market cycle.

Take advantage of irrational human behavior and identify companies mispriced by the market
Unique investment framework directly links valuation and barriers to entry
Deep resourced team of seven, including sector specialists with common investment beliefs
Flexibility to shift portfolio through a market cycle
High conviction portfolio enables alpha generation

Large Cap / High Conviction
STYLE

S&P 500
BENCHMARK

Oct. 1, 2013
INCEPTION

Philosophy

The Large Cap Focused Equity team believes that in order to generate long-term investment outperformance, an investor must:

Pay as little as possible for future value creation
Invest in businesses capable of generating excess returns on capital
Invest in businesses with higher barriers to entry

This philosophy was developed based on the following four tenets of investing which have not changed over time and are embedded within the investment process:

The key to investing is taking advantage of irrational human behavior
- Buy businesses priced for the late stage of the corporate life cycle
Equity portfolios are over-diversified
- Own approximately 25-45 businesses
Pay as little as possible for the future
- Buy businesses which provide future value creation largely for free
The most important factor is the barrier to entry
- Focused on owning companies with higher barriers to entry