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Investment Strategy
Research Process
Portfolio Construction
Sell Discipline
Portfolio Management
Core Brochure
At least 80% of the value of the Fund’s total assets is invested in a diversified portfolio of U.S. common stocks and convertible securities. The Fund prioritizes style consistency and maintaining a large-cap blend profile.
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.
Our investment universe comprises around 1,600 companies. Our process of bottom-up stock selection and fundamental research supplemented by quantitative research are key factors contributing to our track record. Position size in portfolio is based on upside, downside, macro environment, our confidence in company and quantitative guidance given by our proprietary stock scoring model. New position weightings are typically between 0.50%-1% of the portfolio. We participate in all major economic sectors and normally hold 50-75 companies.
Risk management aspects inherent in our portfolio construction process include the following:
- 10% maximum sector weight difference vs. benchmark.
- 5% maximum individual active weight.
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.
Manind V. Govil, CFA (RS) has managed Large Cap Alpha Portfolio since 2005.* Mr. Govil joined RS Investments in October 2006 in connection with GIS's acquisition of an interest in RS Investments. Prior to that, Mr. Govil served as the head of equity investments at Guardian Life since August 2005. From 2001 to August 2005, Mr. Govil served as the lead portfolio manager - large cap blend/core equity, co-head of equities and head of equity research at Mercantile Capital Advisers. Prior to 2001, he was lead portfolio manager - core equity, at Mercantile. Mr. Govil received a BCom degree from the University of Bombay, India and an M.B.A. from the University of Cincinnati.
Core Equity Brochure
* Includes service as a portfolio manager or co-portfolio manager, as applicable, of the Portfolio's Predecessor Portfolio for periods prior to October 9, 2006, the commencement of operations of the Portfolio.
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