WAML Core Select, our flagship U.S. large-cap equity strategy, employs a long-term business-ownership approach within a discount to intrinsic value framework. Our objective is to provide investors with long-term growth of capital. We seek attractive absolute returns while reducing the risk of permanent capital loss in each investment. Our investment process is driven by a bottom-up, fundamental analysis of businesses.
We seek to invest in established, cash-generative businesses that are leading providers of essential products and services with strong management teams, and to purchase the publicly traded equity securities of such businesses at a discount to their intrinsic values*. Estimates of intrinsic value are based on proprietary analysis of prospective free cash flows and returns on capital. We apply a disciplined investment-selection process focused on business, management, and financial attributes.
WAML Core Select will generally hold investments in 25 to 35 North American companies with market capitalizations greater than $5 billion, as well as in certain firms headquartered outside North America in other developed regions. Our targeted holding period is three to five years, and investments are typically sold if they appreciate above our estimates of intrinsic value.
Investment Criteria
We believe companies that possess the following business, management, and financial attributes are well positioned to create value for shareholders through varying economic and market environments.
Business Attributes
- Essential products and services
- Loyal customers
- Leadership in an attractive market niche or industry
- Sustainable competitive advantages
Management Attributes
- Strong operators with integrity
- Favorable capital allocations
- Meaningful share ownership
Financial Attributes
- Strong balance sheet and free cash flow
- High returns on capital
Risks
WAML Core Select may assume large positions in a small number of issuers which can increase the potential for greater price fluctuation.
There is no assurance the objective will be achieved.
*WAML’s estimate of the present value of the cash that a business can generate and distribute to shareholders over its remaining life
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