M.D. Sass
Announcement

Concentrated Value Crosses One Billion in Assets Under Management

March 15, 2024

In February, Concentrated Value (“CV”) crossed $1B in AUM, an important milestone that coincides with our five-year track record achieved at the end of 2023. While assets under management has approximately doubled over the past year, we have reinvested a significant amount of the growth back into the business to enhance both our human and …

In February, Concentrated Value (“CV”) crossed $1B in AUM, an important milestone that coincides with our five-year track record achieved at the end of 2023.

While assets under management has approximately doubled over the past year, we have reinvested a significant amount of the growth back into the business to enhance both our human and technological capital. Recent investment highlights include:

  • In late 2023, we announced a new addition to the investment team. Joon Lee joins us from Point72 where he was a TMT-focused analyst. Prior to Point72, Joon was an analyst at Causeway Capital and started his career as a sell-side analyst at Bank of America Merrill Lynch and Goldman Sachs. Joon brings 10+ years of investment experience with extensive knowledge of technology and media, complementing the core competencies of the rest of the team.
  • In late 2023, we implemented a new third party software tool to enhance our analysis and process around position sizing called Alpha Theory. Alpha Theory enables us to combine a position’s probability-weighted returns with a scorecard of other factors to derive optimal position weightings. We assign a value to five factors including Conviction, Timeliness, Management Quality, Business Quality and Leverage which derive a Confidence Level that is then weighted against a position’s probability-weighted return to determine optimal position sizing. Other considerations also come into play, including liquidity, max drawdown limits and the degree of earnings differential vs. consensus.
  • In the first quarter of 2024, we initiated the implementation of Advent Rules Manager®, a robust trade compliance software module to conform to industry best practices. This software solution will improve our ability to establish proactive controls to ensure adherence to client and firm restrictions, portfolio strategies, and regulations.

We believe our investment in people and technology is a journey and not a destination. We will continue to seek the best talent and tools to enhance our process for the benefit of our clients.