AllCap Value

Description

Westwood's AllCap Value portfolio invests in approximately 60-80 high-quality companies. AllCap Value follows the same disciplined approach as our LargeCap, SMidCap and SmallCap Value strategies with wider market capitalization parameters. The portfolio will typically invest in companies with market capitalizations greater than $100 million at time of purchase and remains 95%-100% invested at all times.

Process

Purchase Discipline

Analysts focus on ideas that have limited downside risk and the opportunity to generate earnings/cash flows that are higher than what the current stock price implies. Companies are closely monitored and factors considered in analyzing securities include:

• Improving ROE (return on equity)
• A declining debt/equity ratio
• Positive cash flow
• Positive earnings surprise without a corresponding increase in Wall Street earnings estimates

Sell Discipline

Companies are reviewed for sale when:

• Stock achieves final price objective
• Fundamental change in company or industry that negatively impacts original investment thesis
• Stock declines 20% over last 30 days

Composite Performance

More Information

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