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INSTITUTIONAL | ALLCAP VALUE EQUITY
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Dearborn Partners' AllCap Value Strategy
Dearborn Partners' AllCap Value strategy allows us to search for value wherever we may find it in terms of company size. We seek companies
whose shares trade at a significant discount to intrinsic value and which have an identifiable and measurable catalyst to unlock the value
that we discern. We seek businesses that trade at 10-40% discounts to private market value, we hold so long as intrinsic value rises faster
than the share price and we sell when the share price and business value are near convergence, believing that the cushion between the two
helps to reduce risk. Buy/sell targets are set at purchase and re-set as necessary.
The Russell 3000 Index comprises the possible universe of companies. We use quantitative screens and basic measures of value to help identify
attractive candidates. Such include enterprise value to cash flow, price to sales, profitability measures and management's disciplined deployment
of capital. Our analysis is top-down and bottom-up so that we do not myopically ignore either the big picture or company specific issues. We strive
for, and have provided, good risk-adjusted relative and absolute returns.
A balanced version of the AllCap Value strategy incorporates high quality and short/intermediate duration portfolios of either taxable or tax
exempt bonds and can include some preferred stocks, Treasury Inflation Protected Securities and other sensible income generating and
portfolio–value-protecting investments. We do not take much risk here because the returns of income generating portfolios do not ordinarily
justify it. However, lack of risk should not be confused with lack of creativity. We are very opportunistic, preferring to shorten durations
when rising rates are likely and the converse when falling rates are likely, adding as much value as we can. The bonds provide an anchor to
windward for the portfolio and also income for client’s needing it.
Reed, Conner & Birdwell, LLC
Through a sub-advisory relationship with Reed, Conner & Birdwell of Los Angeles, CA we offer an All Cap Value product to Taft-Hartley clients.
RCB was founded in 1959 and has $3.8 billion in assets under management.
RCB's philosophy is to manage a concentrated portfolio that represents the firm's best ideas
across the capitalization spectrum. Key aspects of their philosophy and process include:
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Preservation of capital |
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Bottom-up approach |
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Fundamental, internally generated research |
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Long-term investment outlook |
| Investment Team |
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Jeffrey Bronchick - Portfolio Manager |
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Brett Cicinelli - Portfolio Manager |
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James P. Birdwell - Analyst |
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Donn B. Conner - Analyst |
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William A. Cram - Analyst |
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Victor F. Hawley - Analyst |
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James R. Henderson - Analyst |
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Thomas D. Kerr - Analyst |
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James C. Reed - Analyst |
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Geoffrey Stewart - Analyst |
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