Atlanta Capital High Quality Select Equity
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We seek to invest in high quality companies with a demonstrated history of consistent growth and earnings stability. The portfolio is managed with a fundamental, bottom–up investment process, looking for businesses with innovative models, quality management, strong free cash flow, and high returns on invested capital. Historically, this process has produced a diversified portfolio that exhibits solid up-market capture, minimized participation in declining markets, reduced volatility, and high active share.
The Power of Compounding |
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We defined risk as losing client capital. How you perform in down markets has an outsized impact on your total return. By focusing on a small group of high quality companies with consistent and stable earnings growth, we seek to perform well in rising market, and to protect in declining markets. Over a full market cycle, this should allow us to outperform our benchmark with lower volatility and market risk. The real secret to long-term investing success is not what you make, it’s what you keep. |
The Desire to be Different |
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The only way you can beat a benchmark is if you are willing to be different from it. Our high quality investment process is designed to do just that. We seek to build a focused portfolio of high quality companies where position and sector weights are a byproduct of stock-specific conviction. Our investment process is also designed to take advantage of a much longer investment time horizons. As a result, our portfolio will typically have a very high active share versus our benchmark with very low levels of turnover versus our peers. |
Established Team that is Invested |
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Our strategies have been continuously managed by our stable and experienced investment team. A significant amount of the team’s compensation is tied directly to the long-term success of our clients. And while we do not require it, all the members of the investment team have substantial personal investments in our products. |
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Construct a focused, diversified portfolio with a focus on companies with a demonstrated history of consistent growth and stability in earnings, strong free cash flow, and high returns on invested capital. |
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Emphasize companies with management teams that have proven records of effective capital allocation and incentive structures that are aligned with shareholders. |
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Calculate fair value by evaluating a company's historical valuation ranges and private market value. |
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Sell a company if a more compelling investment opportunity materializes, there is a change in the investment thesis, or valuation becomes excessive. |
