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Process and Philosophy: Quality – Discipline – Focus:

The Partners’ Advantaged Strategy is a product of a rigorous investment process designed to identify and invest exclusively in high-quality, advantaged and growing companies with a strict valuation discipline. The team first identifies a business characterized by its ability to generate predictable growth and cash flow. They then apply a thorough valuation methodology to portfolio candidates using discounted cash flow and scenario-based analysis to determine optimal entry points based on a 30% discount to estimated intrinsic value ranges. The team’s accumulated understanding of the fundamental factors that they believe drive long-term intrinsic value growth of a company along with their focus on understanding end-market exposures, provide them with the conviction to meaningfully allocate capital to each portfolio position. The result is a deliberately-diversified portfolio of 20-30 investment opportunities in which the team has high conviction.

The Partners’ Advantaged Strategy is designed to provide long-term growth of capital and may be appropriate for investors seeking a permanent allocation to large cap equities. The strategy provides investors with access to companies that the investment team believes have structural, competitive, and economic advantages relative to competitors and are also priced at attractive valuations. This scenario has the potential to produce favorable relative returns over time.

Partners’ Advantaged: Portfolio Composition

  • Each separate account owns 20-30 individual securities that represent our highest conviction opportunities for long-term capital appreciation.
  • Portfolio is prudently diversified across end markets based on the underlying fundamentals of the businesses owned versus the traditional sector weights of the S&P 500 benchmark.
  • Securities are purchased initially in 1.5% – 2% positions and allow for maximum position sizes up to 6% at cost. High active share emphasized.
  • Targeting long-term (+3 years) investment theses – portfolios have historically produced low turnover.

This material is for informational purposes only. It should not be construed as personalized investment advice or a solicitation to purchase or sell securities. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment vehicle, strategy or product referenced in the material will be profitable or suitable for your particular investment situation.