Schafer Cullen Value Equity
SELECT A STRATEGY
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 3,000 publicly traded equities
- Typical market capitalization > $3 billion
- Identify sector and industry inflection points
Fundamental Research:
- Screen for stocks in bottom quintile according to P/E and P/B basis
- Prefer 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 30-45 holdings
- Diversification across 15-20 industries
- Full position approximately 3%
- Top 10 holdings typically represent 30 – 35%
- Up to 25% international exposure (ADR) at cost
- No more than 30% in any one sector at cost
- No more than 15% in any one industry at cost
- No more than 5% in any one stock at cost