Schafer Cullen International High Dividend Value Equity
Investment Process
The Schafer Cullen investment team relies heavily on fundamental research as part of its investment selection process. Because the firm has a disciplined value investment philosophy, a rigorous review of company fundamentals vs. industry peer and the overall market is an important part of the investment process.
- Screen
For Value - Fundamental
Research - Portfolio
Construction - Sell
Discipline
Screen For Value:
- Begin with largest 2,000 publicly traded equities
- Typical market capitalization > $5 B
- Sector and Industry Inflection Points
Fundamental Research:
- Screen for stocks in bottom quintile according to P/E and P/B basis
- High dividend yield
- Seek low debt to equity and high returns on investable capital
- Search for catalyst that can drive earnings, including:
- New markets
- New products
- Strong managements with clear vision and commitment to shareholder value
Portfolio Construction:
- Approximately 30-40 holdings
- Diversification across 15-20 industries
- No more than 4% in any one stock at cost
- No more than 15% in any one industry at cost
- No more than 30% in any one sector at cost
- Top 10 holdings typically represent 35 – 40%
- Up to 25% international exposure (ADR) at cost