Philosophy & Process
At Becker Capital, we have never wavered from our value-based investment philosophy. We believe that the market provides opportunities to invest in traditional “absolute” value companies, as well as growth-oriented companies currently out of favor with investors and trading at attractive “relative” valuations. When evaluating potential investments, we pay attention to four key characteristics: 1) Investors’ attitudes, 2) Business trends, 3) Quality of business and 4) Valuation discount.
We employ a four step process which is objective, repeatable and consistently applied. The major components include:
Step 1: Idea Generation
We generate our own ideas at Becker Capital, leveraging the collective experience of our investment team. In addition, we employ a quantitative screen of the broad market. Ideas passing our initial criteria become part of the firm's "Monitor List", representing potential investment ideas for research and fundamental analysis.
Step 2: Independent Research
We perform proprietary bottom-up, fundamental analysis on each company in order to build a weight-of-the-evidence case. A written investment thesis is distributed to the portfolio management team prior to formal team discussion. Each potential investment must meet established criteria in order to be added to the firm’s "Buy List". If it doesn’t measure up, it is rejected or subject to further analysis.
Step 3: Portfolio Construction
We build a diversified Large Cap Value portfolio containing fifty to sixty different companies measured against the Russell 1000 Value Index. In selecting stocks from the firm's "Buy List" the portfolio manager invests in the best values while at the same time constructing a portfolio that is diversified by industry.
Step 4: Portfolio Monitoring
We actively monitor every stock in the portfolio for potential changes in fundamentals and valuation. Our team adheres to a strict sell discipline designed to manage downside risk.
The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The performance of the index does not reflect deductiomns for fees, expenses, or taxes. The Index is not available for purchase.
Diversification does not ensure a profit or guarantee against loss.
You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Funds' before investing. The Funds' prospectus contains this and other information about the Funds, and should be read carefully before investing. You may obtain a current copy of the Funds' prospectus by calling 1-800-551-3998. Past performance is no guarantee of future results. Your Fund shares, when redeemed, may be worth more or less than their original cost. Distributed by Unified Financial Securities, Inc., 2960 N. Meridian Street, Suite 300, Indianapolis, IN 46208-4715 (Member FINRA).