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Investment Strategy
Research Process
Portfolio Construction
Sell Discipline
Portfolio Management
Core Brochure
The Fund normally invests at least 80% of its net assets in equity securities. The Fund focuses on companies that pay attractive dividends or that RS Investments believes have potential to growth their dividends.
Through bottom-up, fundamental research and quantitative tools, we identify well-positioned companies that are undervalued.
- Our team process and culture of collaboration between sector specialists and portfolio managers leads to effective decision making and accountability.
- Our sector specialists research companies across the capitalization spectrum, enhancing our ability to identify evolving trends and investment ideas.
- We are style agnostic, but believe that valuation is critical to capturing returns.
We start with an all-cap universe of approximately 3,200 companies. From there we narrow it down to 1,700 equity dividend companies. Our fundamental and quantitative screening processes narrow down the universe further before applying our bottom-up fundamental research process. The final number of holdings within the Equity Dividend portfolio will be between 40–80 companies.
We focus on bottom-up stock selection with an emphasis on the three risk categories that serve as a check and balance in our portfolio construction process. These include: (1) Dividend Centric sectors, (2) Cyclical sectors, and (3) Non-Cyclical sectors.
Portfolio construction also includes an evaluation of the following:
- Upside (reward)
- Downside (risk)
- Macro environment
- Our confidence in company
Sell decisions are driven primarily by fundamental criteria, with valuation a close second in terms of importance. We will exit a stock if:
Fundamentals
Deteriorating long-term outlook.
Weakened competitive position.
Management execution and credibility valuation.
Stock achieves price target.
New idea with better risk/reward potential.
Valuation
Stock achieves price target.
New idea with better risk/reward potential.
Risk Management
Position is no longer at an appropriate size; trim to keep position at appropriate size, independent of valuation.
Raymond Anello, CFA (RS) has managed RS Equity Dividend Portfolio since its inception. Mr. Anello joined RS Investments in October 2006 in connection with GIS's acquisition of an interest in RS Investments. Prior to that, Mr. Anello served as an analyst/portfolio manager at GIS since October 1999. From 1995 to 1998, Mr. Anello was an equity portfolio manager/analyst and high-yield analyst for Orion Capital in New York. From 1988 to 1995, he served as an assistant portfolio manager at Garrison Bradford, a portfolio management firm in New York City. Mr. Anello holds a B.A. from Iona College and an M.B.A. from Baruch College.
Core Equity Brochure
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