ESG Large Cap Value Strategy


Overview: ESG Large Cap Value is an equity strategy investing in common stocks and ADRs only. It builds on our original Large Cap Value investment process with an ESG (Environmental, Social and Governance) overlay that uses an independent, well-regarded ESG ranking service (Sustainalytics), and ESG-specific research, both internal and external.

Investment Objective: An ESG focused portfolio designed to outperform the benchmark in up markets, on average over time, and excel in Value-driven markets while controlling downside risk.

Research Process: ESG and fundamental research, both quantitative and qualitative, are employed by a team of four analysts to identify well-managed companies trading at a significant discount to their intrinsic value.

Buy Discipline: Identify mature, successful companies that meet our ESG criteria with strong financial characteristics, including balance sheet strength, profitability, free cash flow, good management, and long-term growth prospects, that are selling at attractive valuations relative to each company’s intrinsic value.

Sell Discipline: Stocks are candidates for sale under one or more of the following conditions: the stock price reaches our estimate of intrinsic value, financial strength deteriorates, long-term business outlook weakens materially, no longer meets ESG criteria, better ideas surface.

Risk Management: Monitor and assess the contribution to total portfolio risk relative to the benchmark at four levels – security (fundamental and ESG criteria), industry, sector, and portfolio.

Strategy Fact Sheet

ESG Large Cap Value
4th Quarter, 2021