Schafer Cullen Small Cap Value Equity
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:
- Bottom-up approach to security selection which begins with a universe of 2,500 stocks (2,000 U.S. and 500 overseas) with a market capitalization below $5 billion.
- High and/or improving long-term return on capital profile
- Strong liquidity and balance sheet, including amount and maturity schedule of debt
- Dominant or leading position in industries with stable market shares
- Management commitment to enhancing shareholder value with strong Board governance
- Turnaround situations where potentially disposable or improvable segments can highlight value
- On-site meetings and discussions with management, industry experts, suppliers, customers and competitors
- Diversification across approximately 25-35 stocks with equal weighting at cost
- No more than 5% invested in any one stock at cost
- Diversification across 15-20 industries
- No more than 15% invested in any one industry at cost
- Up to 30% invested in foreign securities (ADRs)
- Generally fully invested