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US Core Equity

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Institutional Strategy > Equity > Core Equity

Core Equity

A research-driven strategy that seeks to generate alpha through independent, fundamental research with disciplined management of valuation and portfolio risk

Portfolio includes:

  • high quality companies that exhibit industry leading organic growth
  • top quartile financial strength
  • management track record of success

Actively managed portfolio:

  • provides downside valuation support
  • opportunity driven by “advantaged” earnings growth
  • diversification across industries

Key Risks

Market Risk: The risk of a change in the value of a position as a result of underlying market factors, including among other things, the overall performance of companies and the market perception of the global economy.
Liquidity Risk: The risk that the portfolio may be unable to sell an investment readily at its fair market value.
Counterparty Risk: The risk that the portfolio may be unable to sell an investment readily at its fair market value.
Operational Risk: The risk of direct or indirect loss resulting from inadequate or failed processes, people and systems including those relating to the safekeeping of assets or from external events.
Currency Risk: Investments in a currency other than the base currency of the portfolio are exposed to currency risk. Fluctuations in exchange rates may affect the return on investment. If the currency of the portfolio is different from your local currency, then you should be aware that due to exchange rate fluctuations the performance may increase or decrease if converted into your local currency.

Overview

Investment Philosophy

In our view, a disciplined, research-driven and valuation-sensitive approach with a long-term perspective can generate attractive long-term, risk-adjusted returns.

Fundamentals-based, Bottom-up Research Process

  • Identify “best in class” industry leaders
  • Businesses positioned for advantaged growth
  • Add value as business analysts

Bottom-up and Top-down Valuation Discipline

  • Opportunistically buy stocks of industry leaders
  • Downside risk defined by clear value criteria
  • Portfolio P/E < broader market

Disciplined Risk Management

  • Focus on “knowing what we own”
  • Avoid sector bets and market timing
  • Business outperformance drives alpha
  • Independent risk analysis from centralized analytics team
 

Investment Process

 

 

New Ideas

  • Extensive internal and external research
  • Financially strong companies in underperforming sectors
  • Must meet minimum financial criteria
 

Company Analysis

Detailed company research culls out well-positioned businesses with secular advantages and potential to grow long-term shareholder value.

Investment Strategies Core Equity

Identifying “Best In Class” Companies

Qualifications:

  • Advantaged secular growth potential
  • Top-quartile financial strength
  • Industry-leading ROIC through cycles
  • Proven management
  • Strong and sustainable customer value proposition
  • Sustainable business practices and competitive advantage
  • Shareholder-aligned financial incentives

Disciplined Risk Management

We believe the biggest risk in investing is not knowing what you own.

  • Understand and control company-specific business risk
  • Bottom-up and top-down management of valuation risk
  • Bottom-up and top-down management of portfolio risk
  • Preserve flexibility by managing liquidity
 

Diversification Potential

  • Attractive stand-alone core investment product
  • Research-driven process results in return profile that is complementary to certain other active strategies
  • Return characteristics suggest portfolio may be appropriate as a satellite to complement passive strategies

Management

Ingrid S. Dyott
Co-Portfolio Manager
25 Years of industry experience
23 Years with Neuberger Berman
Sajjad Ladiwala, CFA
Co-Portfolio Manager
26 Years of industry experience
17 Years with Neuberger Berman