Broker Check

U.S. Large Cap

The Large-Cap Equity strategy seeks to invest in high-quality U.S. businesses with durable long-term prospects where our fundamental research identifies a gap between long-term business value and current market expectations. A team of generalists evaluates companies across sectors using a repeatable, fundamental research process and strict criteria for business quality, balance sheet strength, management alignment, and valuation. We seek to buy businesses at a discount to our estimate of intrinsic value and position sizes reflect conviction and margin of safety. The strategy maintains a concentrated portfolio of companies typically valued at more than $20 billion, diversified across sectors, industries and business models.

Fact Sheet   Strategy History and Details

The Large Cap strategy is a relatively concentrated U.S. equity portfolio that invests in U.S. Domestic equities with market capitalization typically over $20 billion, diversified by sector, industry, and business model. The strategy is diversified primarily by end market exposure and business model. This diversification can be approximated by sector and industry, although the portfolio may be absent entire sectors and industries that do not conform to our investment process and quality standards.

The strategy seeks to invest in high-quality, competitively advantaged businesses with good long-term prospects that are trading at a discount to intrinsic value. It is our belief that such businesses are best equipped to outperform their peers over full market cycles. The repeatable, process-oriented nature of our portfolio management employs substantial margin of safety, strict hurdle rates and the ability to organically compound capital. Strong balance sheets, management/shareholder alignment and revenue resiliency reduce the risk of permanent impairment of capital.

Multi-Horizon Returns

7.3%
7.1%
15.1%
-3.6%
-4.1%
10.3%
8.5%
7.4%
22.0%
15.3%
14.1%
20.5%
8.9%
7.8%
12.7%
9.3%
8.2%
13.0%
QTDYTD1YR 3YR5YRITD
  QTDYTD1YR 3YR5YRITD
Large-Cap Equity (Gross) 7.33%-3.65%8.45%15.27%8.88%9.27%
Large-Cap Equity (Net) 7.05%-4.13%7.37%14.12%7.80%8.19%
Russell 1000 Index 15.13%10.32%22.01%20.47%12.66%12.99%
Excess (Net) -8.08%-14.45%-14.64%-6.34%-4.86%-4.80%

Sector Positioning

  Portfolio Benchmark  
Financials30.2%12.0%
Information Technology26.2%36.2%
Communication Services15.0%9.4%
Consumer Discretionary12.3%9.4%
Health Care9.5%9.1%
Industrials6.1%10.0%
Consumer Staples—4.4%
Energy—3.0%
Materials—2.1%
Real Estate—2.1%
Utilities—2.2%
Cash & Other0.6%0.0%

Portfolio Characteristics

 PortfolioBenchmark
# of Securities231,026
Active Share84.1%—
Wtd Avg Mkt Cap$633.8B$79.6B
Median Mkt Cap$86.5B$17.2B
Gross Margin53.1%50.6%
EBIT Margin28.0%26.5%
ROIC21.3%25.1%
P/E21.6x25.2x
P/CF16.3x18.6x
FCF Yield4.0%2.8%
Net Debt/EBITDA0.6x1.3x

Top 5 Holdings

LRCXLam Research Corporation10.50%
GOOGLAlphabet Inc. Class A10.05%
AMZNAmazon.com, Inc.8.51%
SCHWCharles Schwab Corp7.36%
MCKMcKesson Corporation6.33%
Top 5 Total42.74%

Provide your information below to access the Strategy History Presentation

Thank you for your submission! There was a problem with the form submission. Please try again.

Contact UsWe Want To
Hear From You

If you believe you could benefit from working with a financial professional, let’s review your portfolio, financial trajectory, and goals to see if you’re a good match for our practice.

40701 Woodward Ave.
Suite 104
Bloomfield Hills, MI 48302

Thank you!
Oops!