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Investment Strategies: Equities

[ Relative Value Equities Strategy ]

Our Equity Strategy emphasizes relative value across the capitalization spectrum and seeks to take advantage of temporary irrational pricing behavior in individual stocks.

Objectives

  • To outperform the broad market in down markets and over a full market cycle.
  • Investment Strategy

  • "Bottom-up" approach that intensively evaluates company fundamentals, from the quality of the financial statements and management team to the company's competitive position
  • Evaluate every prospective investment from a "top-down" approach in the context of economic, political, sociological, technological, scientific, competitive and financial trends that are likely to have a positive or negative impact on the specific industry, sector and/or company
  • Relative value approach - search for high-quality companies that are out of favor with strong long-term earnings growth prospects
  • Buy when the risk-adjusted present value of estimated future earnings stream exceeds the market price by at least 25% and utilize strong buy/sell disciplines
  • Stay fully invested
  • The M.D. Sass Edge

  • Uncover compelling relative values through rigorous fundamental research process
  • Seek attractively priced opportunities outside the bounds of conventional wisdom
  • Take advantage of irrational pricing behavior in the stock market by buying when temporary supply/demand imbalances occur
  • Manage risk by structuring portfolios with a broadly diversified group of companies



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