US Multi-Cap Opportunities
A fundamental, research-driven strategy that invests across the market capitalization and style spectrum, emphasizing free cash flow and capital structure to identify mispricings and opportunities
- Seeks most attractive investment opportunities across three distinct categories: Special Situations, Opportunistic, and Classic
- Bottom-up approach with an emphasis on free cash flow and capital structure analysis
- Focused portfolio with high active share
- Experienced investment team with attractive long-term track record
Key Risks
Market Risk: The risk of a change in the value of a position as a result of underlying market factors, including among other things, the overall performance of companies and the market perception of the global economy.
Liquidity Risk: The risk that the portfolio may be unable to sell an investment readily at its fair market value.
Counterparty Risk: The risk that the portfolio may be unable to sell an investment readily at its fair market value.
Operational Risk: The risk of direct or indirect loss resulting from inadequate or failed processes, people and systems including those relating to the safekeeping of assets or from external events.
Currency Risk: Investments in a currency other than the base currency of the portfolio are exposed to currency risk. Fluctuations in exchange rates may affect the return on investment. If the currency of the portfolio is different from your local currency, then you should be aware that due to exchange rate fluctuations the performance may increase or decrease if converted into your local currency.
Overview
Investment Philosophy
Portfolio investments are made across three distinct categories: Special Situation, Opportunistic, and Classic. Each category has unique performance attributes and characteristics. Taken together, the three categories enhance return potential and mitigate risk.
- Special Situations: Companies that require tailored, specific valuation methodologies and investment research.
- Opportunistic: Companies that have become inexpensive for a tangible reason that we believe is temporary, not permanent.
- Classic: Companies with proven management teams and consistent long-term performance.
Focus on Free Cash Flow
Our analysis considers the potential uses of free cash flow in developing the business and/or optimizing the capital structure. The combination and potential of these choices impacts shareholder value and is an essential part of our investment process.
- Business Model: On the business side, a company can reinvest in an existing business, enter a new line of business or do a selective acquisition.
- Capital Structure: In terms of capital structure, a company can accumulate cash, pay down debt, buy back stock or issue dividends.
Portfolio Approach
Eight-person team of dedicated investment professionals committed to a disciplined research process, and the ongoing evaluation of current and prospective investments. Portfolios include the best ideas, diversified across market capitalization, style and investment category.
Management
Richard S. Nackenson
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