Schafer Cullen Value Equity


Strategy Overview

Portfolio Managers: Jim Cullen, Jennifer Chang and Brooks H. Cullen Firm Strategy AUM: $413 million as of 06/30/2020 Benchmark: Russell 1000 Value Total Return

History shows that a disciplined value strategy of selecting stocks at low prices relative to their earnings holds the promise of better than average market performance over time. For instance, a strategy of buying stocks with low price/earnings multiples has substantially outperformed the S&P 500 Index.

The stocks selected for our clients' portfolios generally have P/E ratios which are less than the P/E multiple for the S&P 500 Index. The long-term earnings growth prospects for these companies will generally be superior to the earnings growth prospects of the S&P 500 Index. In addition to the low P/E and high earnings growth characteristics, portfolio securities must collectively meet quality standards related to their cash flow, debt to capitalization, price to book and return on equity. After identifying these companies, SCCM invests in those that will benefit from specific catalysts that will drive their performance and stock price.

Properly implemented on a highly disciplined and fully invested basis, this strategy has provided above average performance in rising markets, some measure of downside price protection in falling markets and substantially better than average results over the recent stock market cycle.