Opportunistic
Equity

A diversified strategy that is benchmark agnostic and unconstrained by capitalization, sector, and style

Strategy Objective

Consistently outperform the broad US equity market over rolling 3 year periods with less risk.
 

Approach

The investment team seeks the best opportunities without constraint from a benchmark, market cap, or style. There are two distinct investment types:

  • Catalyst-Driven – an opportunity not recognized by the market where a fundamental change will drive future earnings growth.
  • Opportunistic – companies with attractive growth but short term issues which present us an opportunity at the right valuation.

All investments are analyzed for a clearly defined ratio of upside potential to downside risk, which drives the buy/sell decisions.
 

Differentiating Characteristics

  • Experienced team with long tenures doing fundamental research
  • Ability to go anywhere to find portfolio securities
  • Narrow focus on the types of companies the portfolio managers invest
  • Strict adherence to the team’s reward versus risk discipline
  •  

Philosophy

The Jennison Opportunistic Equity strategy seeks to consistently outperform the broad market over three-year rolling periods with less risk.

We believe that our proprietary, fundamental research is critical to successful stock selection, regardless of market capitalization or style. The Opportunistic Equity team focuses on uncovering companies whose valuations and earnings prospects are not fully recognized or appreciated by the market. It is the starting point of the repeatable process in which all buy/sell decisions are made based on a company’s unique business fundamentals.

Key Characteristics

Benchmark: Broad Market
Number of Holdings: Typically 60 – 80
Strategy Inception: 8/31/1980
Current Manager Inception: 12/31/1998
Turnover: 40 – 75% under normal market conditions
Active Share: Typically greater than 80%
Cash: Typically less than 5%

Investment Team

Our Opportunistic Equity team includes two portfolio managers and two dedicated research analysts.

The team is supported by Jennison’s broader research staff, 22 of whom are active contributors to the Opportunistic Equity strategy.

While decision-making is a team process that involves ongoing collaboration and debate between portfolio managers and analysts, the portfolio managers make 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.