SEPARATE ACCOUNT STRATEGIES

FOCUSED VALUE

SEPARATE ACCOUNT STRATEGIES > FOCUSED VALUE

OBJECTIVE

The strategy aims to provide long-term capital appreciation in a concentrated, high conviction portfolio of value equity securities.

INVESTMENT STRATEGY

The Focused Value strategy provides concentrated exposure to the mid and large capitalization segment of the value equity market through a fundamental, bottom-up, contrarian investment process.

The strategy employs a fundamental value philosophy and a disciplined bottom-up investment process to select equity positions. Thorough reviews are conducted on each company to ensure they are in line with our investment thesis and upside target potential return. The team managed portfolio is constructed with the best and most timely ideas sourced by our portfolio managers and analysts and regularly reviewed by the investment committee. The methodology in constructing the portfolio includes: new positions added in tranches as the investment thesis is confirmed and individual stock over-weights are limited to a maximum of 10%. The portfolio will not hold a company that does not meet the investment selection criteria, regardless of its relative position weighting in the benchmark. The strategy has consistently demonstrated high active share versus the Russell 1000 Value index.

CHARACTERISTICS & WEIGHTINGS

  • Fully invested, typically holding 18 to 24 stocks, conviction-weighted
  • Market Capitalization: Predominantly mid to large cap, can hold up to two smaller capitalization companies
  • Benchmark aware – typically target tracking error less than 10% of the Russell 1000 Value Index
  • Portfolio Limitations:
  • Maximum of 10% position size
  • Industry exposure cannot exceed 25% of the portfolio’s market value
  • Active sector weightings are limited to plus or minus 10% of the benchmark

PORTFOLIO MANAGERS

The portfolio represents our highest conviction ideas and is committee managed by the investment team.

RICHARD A. SNOW
Founder, Managing Principal, Chief Investment Officer
Bio >
JOSHUA R. SCHACHTER, CFA
SENIOR PORTFOLIO MANAGER/PRINCIPAL
Bio >
ANNE S. WICKLAND, CFA
PORTFOLIO MANAGER/SENIOR ANALYST/PRINCIPAL
Bio >
JESSICA W. BEMER, CFA
PORTFOLIO MANAGER/SENIOR ANALYST/PRINCIPAL
Bio >
Joseph Artuso, CFA
PORTFOLIO MANAGER/ANALYST/PRINCIPAL
Bio >
JOSEPH D. FAMOSO, CFA
SENIOR ANALYST
Bio >
CHRISTOPHER QUAIDOO
ASSOCIATE ANALYST
Bio >

CONTACT INFORMATION

Snow Capital Management, L.P.
2000 Georgetowne Drive
Suite 200
Sewickley, PA 15143
Main: (724) 934-5800
Fax: (724) 934-5855
Email: info@snowcm.com
Portfolio Characteristics1
as of 6/30/19
SNOW
 FOCUSED VALUE
RUSSELL
1000 VALUE
Market Cap (Billions)
$94.07
$121.01
Dividend Yield
2.11%
2.72%
EPS Growth – Long Term (I/B/E/S)
6.13
5.89
Free Cash Flow Yield
5.69%
4.54%
P/E – Forecast 12-Month
9.64
13.38
Price-to-Book
1.50
1.90
Market Cap Weightings3
as of 6/30/19
SNOW
FOCUSED VALUE
Small (<$2 billion)
0%
Mid ($2 - 10 billion)
32%
Medium Large ($10 - 50 billion)
31%
Large (>$50 billion)
37%
TOTAL
100%
Top 10 Holdings3
as of 6/30/19
% OF STOCKS
JPMorgan Chase & Co.
5.96%
Bank of America Corp.
5.74%
Broadcom, Inc.
5.50%
AECOM
5.36%
Goldman Sachs Group, Inc.
5.14%
Ally Financial, Inc.
5.09%
Athene Holding Ltd. Class A
4.85%
Target Corp.
4.57%
International Paper Co.
4.35%
Laboratory Corp. of America Holdings
4.30%
TOTAL
50.86%
Industry Allocations3
as of 6/30/19
SNOW
FOCUSED VALUE
Consumer Discretionary (Consolidated)
14%
Industrials (Consolidated)
12%
Commercial Banks
12%
Oil, Gas & Consumable Fuels
10%
Capital Markets
8%
Information Technology (Consolidated)
8%
Biotechnology
7%
Insurance
7%
Consumer Finance
5%
Cash
5%
Materials (Consolidated)
4%
Health Care Providers & Services
4%
Health Care Equipment & Supplies
4%
Performance Data is best viewed in landscape on your mobile device.
as of 6/30/19
MTD
QTD
YTD
1 Year
3 Year
5 Year
7 Year
10 Year
Since Inception
(12/31/2008)
Composite Gross
8.02%
2.41%
14.29%
-2.67%
9.51%
1.15%
10.67%
11.81%
14.52%
Composite Net
7.94%
2.16%
13.78%
-3.61%
8.43%
0.15%
9.64%
10.83%
13.52%
Russell 1000 Value
7.18%
3.84%
16.24%
8.46%
10.19%
7.46%
12.09%
13.19%
12.22%
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Composite Gross
-18.03%
17.75%
15.10%
-18.20%
15.17%
50.18%
24.87%
-6.12%
15.97%
69.90%
Composite Net
-18.87%
16.59%
13.97%
-19.03%
14.02%
49.10%
23.94%
-6.81%
15.10%
68.63%
Russell 1000 Value
-8.27%
13.66%
17.34%
-3.83%
13.45%
32.53%
17.51%
0.39%
15.51%
19.69%

Snow Capital Management L.P. is a registered investment adviser. Registration of an Investment Advisor does not imply any level of skill or training. Snow Capital Management L.P. claims compliance with the Global Investment Performance Standards (GIPS®). A fully compliant GIPS presentation along with a complete list and description of all composites is available at www.snowcm.com or by calling 724-934-5800. The Snow Capital Management Focused Value composite contains fully discretionary accounts consisting of an equity portfolio of less than 25 stocks that invests at least 80% of assets in companies with market capitalizations greater than $1 billion and dates back to 12/31/08. This composite has no minimum requirement and for comparison purposes is measured against the Russell 1000 Value. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. Indexes are unmanaged. It is not possible to invest directly in an index.

The U.S. Dollar is the currency used to express performance. Leverage is not used in this composite. Investing involves risk; clients may experience a profit or a loss. Past performance is not indicative of future results.

Performance is preliminary. Returns for periods greater than a year are annualized. Returns include the reinvestment of all income. Results are based on fully discretionary accounts under management that are eligible for inclusion in the composite during the performance reporting period, including those accounts no longer with the firm. The performance of any individual portfolio may vary from the Composite’s performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance returns are calculated by deducting a model fee of 1.00%, which represents the highest applicable annual fee in effect for the respective time period, applied monthly. Prior to January 1, 2014, the model fee used to calculate net returns was 0.75%. Snow Capital’s advisory fees are outlined in our Form ADV Part 2A (Brochure), which is available upon request. Actual investment advisory fees incurred by clients may vary.

Portfolio Characteristics are presented as supplemental information to the GIPS compliant presentation to illustrate an example of selected characteristics of the Snow Capital Management Focused Value Composite as of September 30, 2018 and how an individual portfolio might have been invested at that time. These illustrations may not be representative of the Composite’s or an individual portfolio’s current or future investments.

The Industry Allocation, Capitalization Weightings, and Top Ten Holdings are presented as supplemental information to the GIPS-compliant presentation to illustrate an example of the industries and securities in which the Snow Capital Management Focused Value Composite was invested on September 30, 2018 and in which an individual portfolio might have been invested at that time. These illustrations may not be representative of the Composite’s or an individual portfolio’s current or future investments. There is no assurance that any of these stocks or sectors will be purchased in the future or are currently held in the portfolio. Top 10 holdings reflect the composite’s cash position but cash is not included as a holding in the list.

INVESTMENT PRODUCTS: NOT FDIC INSURED   ●   NO BANK GUARANTEE   ●  MAY LOSE VALUE