Opportunistic Alpha Managed Account

Seeking Opportunity in Undervalued Business Models

Jump to a section

Overview

Client Commitment

A U.S.-centric equity portfolio, investing opportunistically in what we believe are mispriced business models, unconstrained by sector and with flexibility across market cap. Through deep fundamental analysis, we seek to identify misunderstood and underappreciated companies where we can invest with conviction to create long-term capital appreciation.

Why Invest in the Portfolio

    Thinking Independently

  1. Expressing differentiated views by applying autonomous thinking
  2. Multiple Avenues for Capital Appreciation

  3. Seeking to invest in companies where there is potential for both the free cash flow of the company and the stock multiple to grow over time
  4. Actively Different

  5. This concentrated portfolio seeks to outperform the benchmark over time by leveraging the best ideas of our global research team to identify stocks trading at a discount to their intrinsic value across style, sector and market cap
  6. Various Approaches to Value

  7. Investing with conviction where we believe the market either misunderstands the business model, undervalues the company’s assets or underappreciates the company’s growth potential

Performance

RETURNS

(As of 09/30/2018)
(As of 10/31/2018)
Inception: Apr 01, 2000 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 7.47% 15.75% 18.81% 11.59% 10.24% 9.34% 7.99%
Composite Net 6.70% 13.24% 15.39% 8.36% 7.04% 6.17% 4.85%
S&P 500® Index 7.71% 10.56% 17.91% 17.31% 13.95% 11.97% 5.70%
Inception: Apr 01, 2000 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* -8.03% 3.73% 6.28% 6.43% 7.28% 10.90% 7.32%
Composite Net -8.73% 1.20% 3.19% 3.33% 4.16% 7.68% 4.20%
S&P 500® Index -3.25% 3.01% 7.35% 11.52% 11.34% 13.24% 5.27%
Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. All returns reflect the reinvestment of dividends and other earnings.
*Pure gross performance results do not reflect the deduction of any trading costs, fees or expenses and returns will be reduced by such advisory fee and other contractual expenses as described in the individual contract and Form ADV Part 2A. Pure gross returns are supplemental to net returns.
Net returns are calculated by subtracting the highest applicable Managed Account fee (3.00% annually, or 0.25% monthly) from the pure gross composite return. The Managed Account fee includes all charges for trading costs, portfolio management, custody and other administrative fees. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The fees are available on request and may be found in Form ADV Part 2A.

RETURNS-BASED STATISTICS

(Composite As of 09/30/18)

RISK / REWARD
VS. S&P 500® INDEX

3 YEAR 5 YEAR
Information Ratio -0.74 -0.50
Alpha -3.12 -1.74
Tracking Error 7.70 7.46
Beta 0.90 0.90
R-Squared (%) 53.79 57.27

UP AND DOWN MARKET CAPTURE (%)
VS. S&P 500® INDEX

3 YEAR 5 YEAR
Up Capture Ratio 68.42 72.72
Down Capture Ratio 77.18 75.45

STANDARD DEVIATION

3 YEAR 5 YEAR
Opportunistic Alpha Managed Account 11.25 11.32
S&P 500® Index 9.18 9.55

SHARPE RATIO

3 YEAR 5 YEAR
Opportunistic Alpha Managed Account 0.96 0.86
S&P 500® Index 1.80 1.41

Characteristics

Index represents the S&P 500® Index.

TOP HOLDINGS

(As of 10/31/2018)

% of Rep Account
Ball Corp 6.87
TD Ameritrade Holding Corp 5.75
Abbott Laboratories 5.52
Citigroup Inc 5.37
Alphabet Inc 5.13
Allergan PLC 4.57
NRG Energy Inc 3.98
Intercontinental Exchange Inc 3.38
PacWest Bancorp 3.32
Air Products & Chemicals Inc 3.09
TOTAL 46.98

PORTFOLIO CHARACTERISTICS

(As of 11/30/18)

REP ACCOUNT INDEX
Number of Holdings
Equity Issues
42
505
Market Capitalization
Weighted Average
$85.08B
$219.71B
Portfolio Turnover Rate
(1-year trailing)
64.93%
-
Price/Earnings Ratio
(1-year forward)
20.05
18.99
Price/Book Ratio
(1-year forward)
4.14
5.13
Earnings Growth Rate
(1-year forward)
18.28%
20.23%

DEVELOPED VS. EMERGING MARKET

(As of 10/31/18)

% OF REP ACCOUNT % OF INDEX
U.S. 92.73 99.55
Non-U.S. Emerging 2.47 -
Non-U.S. Developed 1.73 0.45
Cash & Equivalents 3.07 -

SECTOR ALLOCATION

(As of 10/31/18)

% OF REP ACCOUNT % OF INDEX
Financials 22.43 13.57
Materials 15.43 2.56
Health Care 15.03 15.02
Information Technology 14.22 20.75
Industrials 12.17 9.28
Communication Services 7.81 10.10
Consumer Discretionary 4.69 9.79
Utilities 3.98 3.09
Energy 1.17 5.69
Cash & Equivalents 3.07 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 10/31/2018)

% OF REP ACCOUNT % OF INDEX
Over $100B 21.27 51.30
$50B to $100B 8.35 17.72
$10B to $50B 38.46 28.60
$5B to $10B 18.72 2.24
$1B to $5B 8.78 0.14
$500M to $1B 1.35 -

REGIONAL ALLOCATION

(As of 10/31/18)

% OF REP ACCOUNT % OF INDEX
North America 92.73 99.55
Latin America 2.47 -
Europe 1.73 0.45
Cash & Equivalents 3.07 -

Commentary & Literature