Large Cap Intrinsic Value
The Large Cap Intrinsic Value strategy contains securities that generally have a minimum market capitalization of $1 billion and a quality rating of B- or higher.
Using a Price to Intrinsic Value approach, we determine the current value of the projected future cash flows. This discounted value is then measured against the securities current price giving us the ratio. We then determine the securities we believe have the greatest opportunity for reward relative to all viable alternatives. Individual securities, industry sectors, and complete market indices can be evaluated utilizing this methodology.
We screen for securities that possess a market capitalization of $1 billion and above, extraordinary quality in the balance sheet and income statement, exceptional internal management, and a fundamental prospect that can force recognition by the market of the intrinsic value. Utilizing both quantitative and qualitative detailed fundamental research, we are able to create a portfolio that seeks to replicate these qualities. We tend to hold, on average, 40-60 positions balanced across multiple industry sectors. We limit our sector weightings to +/- 6% on an absolute basis or 50% on a relative basis to the S&P 500. The top 10 positions will average 20-30% of the portfolio's assets, with turnover between 15-30%. Our portfolio team maintains an active database of 4,500 securities that are subjected to this methodology and reviewed regularly for purchase or sale candidates.
| Large Cap Intrinsic Value |
| 4th Quarter 2011 Results |
|
Large Cap Intrinsic Value (Gross) |
Large Cap Intrinsic Value (Net) |
Russell 1000
Value |
S&P 500 |
| 4Q11 |
13.36% |
13.20% |
13.11% |
11.82% |
| YTD |
3.76% |
3.13% |
0.39% |
2.11% |
| 1 Year |
3.76% |
3.13% |
0.39% |
2.11% |
| 3 Year |
14.07% |
13.38% |
11.55% |
14.11% |
| 5 Year |
0.87% |
0.26% |
-2.64% |
-0.25% |
| 7 Year |
4.00% |
3.37% |
1.95% |
2.64% |
| 10 Year |
4.29% |
3.66% |
3.89% |
2.92% |
| 15 Year |
7.40% |
6.80% |
6.25% |
5.45% |
| 20 Year |
9.08% |
8.50% |
8.90% |
7.81% |
| Since Inception(01/81) |
11.07% |
10.50% |
11.15% |
10.41% |
Performance Disclosure LCIV
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LC Intrinsic Value Annual Verification 2010
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