Institutional Strategy > International Select

International Select

A flexible, research-driven, mid-to-large cap strategy with an attractive risk/return profile, managed by a stable, experienced team since 2001

Seeks differentiated mid-to-large cap quality businesses with an enduring competitive advantage trading at reasonable prices (QuaRP)
Disciplined investment approach focused on strategic fundamental analysis and valuation assessment
Comprehensive risk management embedded in portfolio construction and oversight processes

Elias Cohen, CFA

Senior Portfolio Manager

Thomas Hogan, CFA

Portfolio Manager

Overview

Investment Philosophy

Believe fundamentally-based research process can identify potential outperformers:

Quality companies: Returns of 1.5x cost of capital, organic growth, strong balance sheets
Reasonable price: 50% appreciation potential over 3 years

Investment Process

Screens narrow the universe to a manageable set of companies that undergo in-depth analysis

Investable Universe

Companies domiciled outside the U.S. with market cap > $2.5bn and > $5mm daily liquidity

Quality Track Record

Profitability: ROIC > 12%¹
Financially Strong: Net Debt/EBITDA 2.5x for non-financials
Growing: EPS Growth > 5%

Strong Outlook

Industry and competitive positioning analysis
Historically averaged approximately 1,000 company meetings annually; 50+ weeks of travel to international markets
Meet with competitors, suppliers, clients and regulators

Undervalued

Proprietary discounted cash flow model to identify 50% upside potential over 3 years
Analyze sensitivity to core revenue, margin and cap-ex assumptions
Consider other valuation metrics: P/CF; P/E; P/BV; EV/EBITDA

QuaRP Portfolio

Measure risk at the security and portfolio level
Position size based on potential upside and level of conviction
Typical 30-50% turnover

¹For financials the team looks for sustainable ROE > 12%.

Management

Elias Cohen, CFA

Senior Portfolio Manager

24 Years of Industry Experience

24 Years with Neuberger Berman

Thomas Hogan, CFA

Portfolio Manager

25 Years of Industry Experience

13 Years with Neuberger Berman