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.
To outperform the broad market in down markets and over a full market cycle.
"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