Large Cap
Value

Focused on finding companies whose intrinsic value increases over time

Strategy Objective

Seeks to outperform the Russell 1000® Value over a market cycle with an attractive risk profile.

Approach

  • The investment team looks for stocks of companies it believes are priced at a discount to their intrinsic value, which is determined using fundamental research.
  • Establishing upside and downside scenarios, as well as thesis milestones for the evolution of the business is key to our investment process
  • Our expectation is for the portfolio to consistently fall in the center of the value style box.
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Differentiating Characteristics

Traditional and Contrarian
  • A fundamental, bottom-up traditional value strategy with a bias toward out of favor companies.
Intrinsic Value Approach
  • Use in-depth research to uncover what a company should be worth over time.
Focus on Downside Risk
  • Seek to mitigate downside risk by investing in companies which we think have favorable risk/return profiles and higher margins of safety.
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Philosophy

The team’s philosophy is based on the beliefs that:

  • Over the long-term stock prices will reflect the underlying intrinsic value of the company, but short-term factors can create an opportunity to uncover mispriced securities
  • Investment opportunities are best revealed by a process that includes company specific fundamental research and collaboration among talented and experienced professionals
  • A disciplined process to manage risk, in both security selection and portfolio construction, is critical to adding value and enhancing the probability of achieving consistent results

Key Characteristics

Benchmark: Russell 1000® Value Index
Number of Holdings: Typically 60 – 80
Maximum Position Size: Typically less than 5%
Turnover: 20 – 25% under normal market conditions
Active Share: Approximately 75 – 80%
Cash: Typically less than 5%

Investment Team

Our Large Cap Value team consists of two portfolio managers and two dedicated analysts in what is a highly collaborative process.

The team is supported by Jennison’s broader research staff, 17 of whom are active contributors to the Large Cap Value strategy.

While decision-making is a team process that involves ongoing collaboration and debate between the portfolio manager and analysts, the portfolio manager makes final investment decisions.

 

Meet the Team

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors. The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.

Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Additional considerations:
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.

The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.
These materials do not purport to provide any legal, tax or accounting advice.