Unconstrained Equity
We believe that:
- A concentrated portfolio of high-conviction Growth and Value stocks should consistently outperform a blended index.
- Well constructed portfolios of 20-25 positions may be less volatile than benchmarks with hundreds of holdings.
- Longitudinal diversification over a full market cycle offers advantages over static, incremental sector bets.
This strategy is:
- Designed to diversify and increase the risk-adjusted return of a core equity portfolio.
- Typically categorized as small or mid cap blend.
- Eclectic, benchmark agnostic, broadly dispersed, often style tilted.
- Intended to outperform broad market benchmarks (S&P 500, Russell 3000) by 200 basis points per year after fees with alpha of at least 300 basis points over most rolling 36-month and 60-month periods.
- Expected to provide very low correlation (R-squared below 0.60) to broad equity indices.
We want to own uniquely attractive Growth and Value stocks.