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We seek long-term growth of capital by investing in undervalued U.S. large capitalization companies.

We believe in targeting undervalued companies in relation to the market, their peer group and their historic earnings multiples. Relative value investment candidates will possess a catalyst to unlock shareholder value.

    • Fundamental, bottom-up value discipline across sectors, leveraging broad GE resources
    • Focus on unappreciated stocks with an identifiable catalyst
    • Long-term focus: three- to four-year investment time horizon

Once a stock is identified as relatively undervalued, the team, supported by the research analysts, performs additional fundamental analysis to determine if there is a sufficient catalyst to unlock the hidden value (three to four-year time horizon). Once a stock is in the strategy, it may be sold when it achieves a predetermined price target or, in some cases, eliminated due to deteriorating fundamentals. The proceeds are then reinvested into what we believe to be more compelling relative value investments. The strategy is broadly diversified across all sectors and not just invested in out-of-favor value sectors.

Other U.S. Equity Strategies
The portfolio management team consists of Paul Reinhardt, CFA and Steve Gelhaus, CFA. GEAM's U.S. Equity team of research analysts supports the security selection process.
  • Investment “universe” of +/-750 names
  • Develop focused list of +/-375 names representing “competitive” winners
  • Screen for undervalued vs. growth rate, peer group and market
  • Catalyst to unlock value
Research
  • Direct with company
  • Wall Street/ proprietary modeling
  • GE Global Network
Buy Decision
  • Attractive valuation
  • Solid management
  • Consistent execution
  • Strategic direction
  • Internal analyst’s opinion
Sell Decision
  • Achieves price target
  • Management changes
  • Fundamentals deteriorate
  • Change in strategic direction
  • Change in analyst’s opinion
Well diversified : 95-110 holdings

Emphasis on relative value vs. S&P 500®

Target of < 3% Cash

Historical average annual turnover of 35–45%

 
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