PHILOSPHY
Absolute Value, High Conviction
The MARKSTON team employs an actively managed, high active share approach, focusing on long-term "buy-and-hold" investments in well-established companies within our “circle of competence”. The strategy employs both quantitative and qualitative screening methodologies coupled with stock selection informed by independent fundamental analysis. The strategy seeks to generate returns by concentrating investments in public businesses with strong cash-flow generation as the discount to our model of a company's "intrinsic value" widens.
- Invest in businesses that have defendable franchises
- The business produces solid fundamental results that
will increase shareholder value over time - Invest with a margin of safety in the valuation of the
company - Hold for the long-term, as long as the investment
thesis remains intact - Invest alongside capable owner-oriented management teams
US Large Cap Value generally invests in securities with a market capitalization greater than $5 billion. There are typically 25 - 40 holdings with portfolio turnover of 25 - 40%. New positions generally begin at 1 - 2% of the portfolio; however, the highest conviction ideas can grow beyond 5%.
PROCESS
Value with a Catalyst
We employ a "Value with a Catalyst" research process to support our core investment products. Investments generally comprised of at least three of our seven “alpha generators.”
- Insider Buying (including options activity)
- Stock repurchase by the company
- Management changes
- Sale or spin-off of a division
- Consolidating industries
- Tax-loss carryforwards
- Triple-Discount Valuation Mechanism™
We have been employing a "Value with a Catalyst" process since our inception in 1981. We believe it is a flexible methodology that allows us to span the market capitalization spectrum in our quest for alpha.
U.S. LArge cap value
Stock Selection
U.S. LARGE CAP VALUE
Circle of Competence
PRODUCTS
Managed Accounts
INVEST