M.D. Sass
Announcement

Concentrated Value Reaches Five Year Track Record

March 15, 2024

The conclusion of 2023 marked an important milestone for Concentrated Value – the 5th year anniversary of the strategy’s inception. This period has tested our philosophy and process amidst various challenges, including a pandemic, multiple interest rate cycles, inflation, geopolitical tensions, and significant market volatility. We are proud of the results we have achieved despite …

The conclusion of 2023 marked an important milestone for Concentrated Value – the 5th year anniversary of the strategy’s inception. This period has tested our philosophy and process amidst various challenges, including a pandemic, multiple interest rate cycles, inflation, geopolitical tensions, and significant market volatility. We are proud of the results we have achieved despite these hurdles, which we believe affirm the effectiveness of our investment approach.

A few highlights of Concentrated Value’s achievements over the past five calendar years ending December 31, 2023:

  • Cumulative returns placed it in the top 2nd percentile of all large-cap value managers per eVestment.[1]
  • Outperformance in each of the past five years with annualized net excess returns of over 700 bps.[2]
  • Top decile Information Ratio since inception vs. peers with upside capture of 118% and downside capture of 91% vs. the Russell 1000 Value.[3]
  • Average excess returns (net) of +0.65% in up markets and +.47% in down markets.[4]
  • 93% of alpha from stock selection with only a small contribution from sector selection.[5]

Our triumphs have not diminished our humility or appetite for success since the inception of Concentrated Value five years ago. Recognizing that complacency may arise after periods of robust performance, we remain dedicated to upholding the same level of rigor, intensity, and intellectual curiosity in the coming five years as we have in the past five.

 

 [1] Past performance is not indicative of future results. Performance information is for the period from Concentrated Value’s inception on January 1, 2019 through December 31, 2023. eVestment provides institutional investment data, analytics and market intelligence covering public and private markets. Peer Universe is defined as all institutional strategies that scope in the Large and All Cap Value Universe. Number of strategies included in eVestment Large Cap Value Universe (181) and All Cap Value Universe (49), as of 12/31/23. Cumulative returns are ranked on a gross basis vs. peers.

[2] January 1, 2019 through December 31, 2023.

[3] Source: eVestment. Information Ratio (IR) is a measurement of portfolio returns beyond the returns of a benchmark, compared to the volatility of those returns.

[4] Measurement period includes 25 down months and 35 up months.

[5] Based on Bloomberg PORT analysis. Stock Selection Effect measures the ability to select securities within a sector relative to a benchmark. It is intended to describe the portion of excess return attributable to the investment team’s skill in selecting securities rather than the overweighting or underweighting of sectors relative to a benchmark.