Large Cap Value Equity
Product Overview
At ICM we are investors in companies, not traders of stocks. We seek to identify strong economic franchises – companies with sustainable competitive advantages. We commit to these investments only when convinced they are significantly undervalued and after we have attempted to discover an inflection point or change in business momentum.
Our approach requires a three to five year time horizon. In taking a truly long-term view of the companies we want to own, we attempt to capitalize on the short-term volatility and inefficiencies in the market which often result from issues that have little or no bearing on the company's long term value.
| Asset Class / Style | U.S. Equity / Value |
|---|---|
| Inception Date: | 1/1/1986 |
| Benchmark 1: | S&P 500 Index |
| Benchmark 2: | Russell 1000® Value Index |
| Total Product Assets: | $140 MM as of 6/30/2010 |
Investment Process
ICM is differentiated from other value managers by our initial focus on the underlying economic franchise, with the perspective of a three to five year time horizon. Our process combines the application of proprietary screening with intensive fundamental analysis and a strong emphasis on valuation in both buy and sell decisions. We attempt to discover inflection points or changes in business momentum. Risk is controlled primarily through the three margins of safety incorporated into the valuation process. This process results in concentrated portfolio’s of 30 – 40 holdings.
Performance As of 6/30/2010
| Annualized Returns (%) | |
|---|---|
*Since Inception: 01/01/1986 |
Net performance reflects the deduction of brokerage commissions and expenses incurred to manage the portfolio, and the reinvestment of dividends and other income. Gross performance does not include the deduction of investment management fees. Please refer to the full disclosure found under Additional Information.
Portfolio Highlights
| Portfolio Characteristics | As of 6/30/2010 | ||
|---|---|---|---|
| Characteristic | ICM | Benchmark ¹ | Benchmark ² |
| P/E Ratio ³ | 14.3 | 14.5 | 12.9 |
| P/B Ratio ³ | 2.0 | 1.9 | 1.4 |
| Weighted Average Market Cap ($B) | 67.0 | 72.5 | 59.3 |
| Historical Earnings Growth 3-Year | 3.8 | 4.6 | -2.3 |
| Dividend Yield | 1.5 | 2.1 | 2.5 |
| Est. 3-5 Yr EPS Growth | 12.2 | 10.9 | 9.1 |
¹ S&P 500 Index
² Russell 1000® Value Index
³ The harmonic average is used when averaging ratios that may produce extreme results due to small relative numbers in the denominator, such as P/E, P/B, etc. The harmonic average by itself does not exclude extreme values (positive or negative), it simply reduces the impact of outliers on the aggregate calculation.
| Sector Weightings* | As of 6/30/2010 | ||
|---|---|---|---|
| Sector | ICM | Benchmark ¹ | Benchmark ² |
| Information Technology | 18.9% | 18.7% | 5.5% |
| Consumer Discretionary | 18.3% | 10.1% | 7.2% |
| Financials | 16.9% | 16.3% | 28.5% |
| Health Care | 14.7% | 12.1% | 13.5% |
| Energy | 11.8% | 10.7% | 10.6% |
| Consumer Staples | 10.1% | 11.5% | 10.6% |
| Industrials | 7.7% | 10.4% | 9.0% |
| Telecom Services | 1.5% | 3.0% | 4.9% |
¹ S&P 500 Index
² Russell 1000® Value Index
|
* The portfolio is actively managed and holdings are subject to change, and should not be considered as investment recommendations to buy individual securities. |
Additional Information
| Portfolio Materials |
|---|
| 2Q 2010 ICM Large Cap Value Fact Sheet (PDF) |
| Large Cap Value Equity GIPS disclosure (PDF) |
