VALUEPLUS EQUITY PORTFOLIO
Our ValuePLUS process is based on our philosophy that we can achieve consistent, superior long-term results by building portfolios of high quality, undervalued companies possessing exceptional management and financial characteristics. To be considered for purchase, a company must also possess a catalyst, which improves the potential for increased shareholder wealth. Our process emphasizes in-house fundamental research and the experience of our investment professionals in identifying these opportunities. Risk control is essential to the long-term preservation of our clients' capital.
ValuePLUS Equity Philosophy
Needelman Asset Management specializes in the management of large capitalization value oriented portfolios. We built our ValuePLUS investment process around the 4 major principles of our investment philosophy:
- Place our clients' objectives first
- Assume the least amount of risk in the pursuit of superior results
- Focus on fundamental analysis
- Invest in companies that create shareholder wealth
Our mandate is to provide consistent, competitive performance over all market cycles. We achieve these results by rigorously adhering to our bottom-up value process, broadly diversifying across all market sectors.
ValuePLUS Equity Process
Step 1: Screen for Value
- Low P/E, low Price/Book (relative basis)
- Must pay a dividend (except for technology stocks)
- Capitalization of at least $5 billion
Step 2: Apply Fundamental Analysis
- Analyze the quality of the company's management, its balance sheet, the business itself and the strategic business plan
- Determine a catalyst, existing or potential, such as: dividend increases, stock repurchases, corporate restructurings, mergers and acquisitions, changes in business strategy
Step 3: Construct the Portfolio
- 35-45 equity issues
- No more than 5% in any one issue
- No more than 10% in any one industry
- Broad diversification by industry and sector
- Accommodate client specific guidelines and restrictions
Step 4: Sell to Take Profits, Protect Principal
- Stocks are reviewed
- When the stock's upside price objective is reached
- In order to make room for new opportunities
- When fundamental and/or technical factors deteriorate from original expectations
- When continuing analysis suggests a shift out of a particular sector or industry
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