“We believe value and growth are not mutually exclusive. As value investors, the price we pay is important, but we are very selective seeking to invest in high-quality companies with solid earnings and growth, characteristics that over the long-term will outperform.”
– Michelle E. Stevens, CFA, Senior Portfolio Manager
Located near Cincinnati, OH, our value team of investment professionals has consistently worked together for more than 15 years. The team is led by Michelle Stevens, who has managed the value strategies since their inception.
Our Investment Philosophy
Based on the belief that high-quality companies with attractive valuations provide above-average return potential in rising markets and offer risk management during market declines. The investment process employs detailed, bottom-up research to find companies with durable, sustainable upside earnings prospects such as barriers to entry, pricing power and demonstrated products and services. We seek companies with the fundamental characteristics of growth companies trading at a discount to their intrinsic value.
Consistent with past economic and market cycles, low quality/high beta stocks led out of the bear market of 2020. While we had hoped at the end of last year that the baton had been handed off to quality value leadership, we were early, and the beta trade outperformance accelerated to what appears to have been a blow off top by mid-March. In total, the 12 months witnessed the quintile of the highest beta stocks up 255% versus a 29% gain for the quintile of the lowest beta stocks in the Russell 2000 Value! A near 10-fold better return and something we have not witnessed since the 2009 rally post the Great Financial Crisis.