U.S. Equity

Decades of investing have taught us that market perceptions fluctuate much more widely than underlying company fundamentals. That's why we believe it's impossible to predict short-term price movements. Instead, we focus on a three- to five-year horizon, thinking and acting as part-owner of the companies in which we invest. This enables us to concentrate on factors—such as franchise strength, financially material ESG factors, growth opportunities, and management quality—we believe ultimately determine long-term business success.

Our Global Industry and Fixed Income analysts are the engine behind idea generation and risk analysis. They research the entire capital structure of the companies they cover around the world, and meet with company management teams, competitors, suppliers, customers, and industry experts to conduct ongoing due diligence, They dig deep into each company’s financials to understand cash flow characteristics, balance sheet strength, and access to capital to project a range of possible outcomes for future returns. We believe the quality and depth of our research serve as a key source of value-add for our clients, enabling us to better understand an investment’s potential opportunities and risks.

A strong price discipline is an essential characteristic of our investment philosophy. When a company's valuation reflects pessimism about its current challenges or overlooks its growth potential, we may see a long-term opportunity. Conversely, a great company may not be a great investment if its valuation is too high relative to its long-term profit outlook. The starting price for an investment is a key component of its future investment return, so we seek opportunities where a company’s valuation is low relative to our outlook for its future revenue, cash flow, and earnings generation.

We believe the primary risks investors face are the possibility of permanent loss of capital and erosion of future purchasing power. Evaluating these and other risks involves analyzing downside scenarios, and determining if we’re being adequately compensated for them over our investment horizon. By building our knowledge of each holding and analyzing overall portfolio risk exposures, we seek to manage risk effectively and help our clients achieve their long-term investment objectives.