Diversified Large Value Equity

Sawgrass Asset Management’s Diversified Large Cap Value’s investment philosophy focuses on companies that grow their earnings faster than the market, are more profitable than the market as measured by ROE & ROA, trading at a discount to the market as defined by P/E ratios, and generally have lower price volatility than the market. Although the emphasis is stock selection, being able to identify and control risk at the portfolio level is an important component of the strategy. Our quantitative and fundamental blended investment process helps us to identify these types of companies and build portfolios that exhibit these characteristics in our attempt to provide our clients long-term outperformance with less risk.

Investment Process

The process begins with a sector specific quantitative scoring of a 900-1000 stock universe. Our proprietary modeling system evaluates twenty four factors contained in six groupings including business valuation, equity valuation, profitability, earnings quality, price volatility, and sales, earnings, and margin stability.

Our fundamental research process is then used to distinguish among the most intriguing candidates for portfolio inclusion based on a qualitative assessment of company specific attributes, growth prospects, and risk contribution. This process flows in five general steps and includes a detailed review of the quantitative scoring, financial statement analysis, evaluation of management growth presentation, review of analyst research and estimate revisions, and a risk/reward analysis.

This blended approach helps us stay focused and consistent in building the attractively valued, profitable, lower volatility growth portfolios that we believe provide the best foundation for longer term outperformance on both an absolute and risk-adjusted basis.