Overview
Overview
Wellington Management’s Value SMA seeks to provide returns above the Russell 1000® Value Index by investing in solid companies that are temporarily out of favor and offering a compelling combination of valuation, quality, and capital return.
Idea Generation
Team ranks universe across combination of valuation, quality and capital return.
Fundamental Research
Contrarian approach based on longer-term fundamentals, while evaluating each opportunity’s quality and capital return profile.
Portfolio Construction
Focus is on solid companies with temporary issues, rather than distressed opportunities, leveraging a bottom-up research process.
Philosophy
Philosophy
The investment team believes that the strength of the research on which the Value SMA is built provides a significant advantage to investors. The portfolio employs a disciplined investment process and has a deep experienced investment team dedicated to Value investing. The team also benefits from the ability to leverage broad firm research resources. Wellington Management’s substantial investment in global research capabilities underlies their ability to understand companies and their respective industries, and to add value through intensive bottom-up, fundamental analysis.
Process
Process
The investment process starts with a universe of discounted, large cap companies with capitalizations typically in excess of $4 billion. From there, the team ranks this universe across a combination of valuation, quality, and capital return, excluding structurally impaired companies.
The bottom-up research process then focuses on the top half of companies in their ranker, with the investment team seeking to identify areas of opportunity which may offer a valuation disconnect. The team attempts to understand any investor behavioral biases that may be impacting stock prices such that valuations are inconsistent with their fundamental research.
Areas of opportunity that can lead to new ideas for the portfolio include misunderstood negative events, temporarily depressed returns, management changes and consolidating industry structure.
Team
Team
Different by design
Wellington Management Company is a global asset manager with expertise and solutions across equity, fixed income, multi-asset and alternatives. They offer comprehensive investment capabilities built on rigorous, proprietary research spanning nearly all segments of the global capital markets, including equity, fixed income, multi-asset and alternative strategies.
Adam Illfelder
Senior Managing Director
Betsy George
Managing Director and Equity Research Analyst
Ravi Gill
Managing Director and Equity Research Analyst