The strategy aims to provide long-term capital appreciation in a concentrated, high conviction portfolio of value equity securities.
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
The portfolio represents our highest conviction ideas and is committee managed by the investment team.
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.