Portfolio manager Brian Campbell of The London Company, in collaboration with four colleagues, shares responsibility for steering the Touchstone Mid Cap Fund. “Putting the Odds in Their Favor,” an article by Barron’s, recently highlighted observations and opinions from Campbell regarding the fund and the sub-advisor’s approach to its management. Among them:
- Amid economic, market, and political uncertainty, “our whole process is designed to reduce the chances of being wrong.”
- The managers take a “private-equity approach” in evaluating the value of a company. While stocks trading at the team’s desired discount to a company’s intrinsic value have become harder to find, the concentrated portfolio needs only a few new ideas every year.
- The London Company believes mid caps are an ideal universe for finding companies with inherent competitive advantages in their respective niches, reasoning that “you’re not fighting the law of large numbers, but you still get industry leaders.”
- Managers at The London Company take a holistic approach to finding ideas, including asking management teams of companies they research about other companies they admire.
- There is also something to be said for family-controlled companies seen as well run. “When management teams have a lot of personal equity tied to the business, it gives us additional comfort. [We believe] They tend to be more longer-term focused and disciplined with investors’ capital.”
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A Word about Risk
The Fund invests in equities which are subject to market volatility and loss. The Fund invests in stocks of mid-cap companies which may be subject to more erratic market movements than stocks of larger, more established companies. A fund that focuses its investments in the securities of a particular market sector is subject to the risk that adverse circumstances will have a greater impact on the fund than a fund that does not focus its investments in a particular sector. Events affecting the financial markets, such as a health crisis, may at times result in unusually high market volatility, which could negatively impact Fund performance and cause it to experience illiquidity, shareholder redemptions, or other potentially adverse effects. Current and future portfolio holdings are subject to risk. The Advisor engages a sub-advisor to make investment decisions for the Fund’s portfolio; it may be unable to identify and retain a sub-advisor who achieves superior investment returns relative to other similar sub-advisors.
Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and the summary prospectus contain this and other information about the Fund. To obtain a prospectus or a summary prospectus, contact your financial professional or download and/or request one on the resources section or call Touchstone at 800-638-8194. Please read the prospectus and/or summary prospectus carefully before investing.
Not FDIC Insured | No Bank Guarantee | May Lose Value