Portfolio Guidelines

  • Typically 30–40 positions
  • Maximum position size is 7%
  • Top 10 holdings are typically greater than 35% of net assets
  • Maximum industry exposure is 20%
  • Maximum sector exposure is 35%

Market Capitalization

The portfolio typically invests in companies with a market capitalization greater than $500 million.

 

Top Ten Equity Holdings
As Of June 30, 2018

Berkshire Hathaway, Inc. (Cl B) Financials 5.1%
MetLife, Inc. Financials 5.1
Discover Financial Services Financials 4.5
Johnson Controls International PLC Industrials 4.5
United Continental Holdings, Inc. Industrials 4.4
Alphabet, Inc. (Cl A) Info. Technology 4.0
Philip Morris International, Inc. Consumer Staples 3.9
Loews Corp. Financials 3.7
Cimarex Energy Co. Energy 3.4
Post Holdings, Inc. Consumer Staples 3.4
Total As % Of Net Assets 42.1%
Total Number Of Equity Holdings 35

Sector Allocation1
As Of June 30, 2018

Select Composite Russell 3000 Index Russell 3000 Value Index
Financials 31.9% 14.3% 23.7%
Industrials 16.0 10.2 8.2
Cons. Discretionary 15.8 13.6 9.4
Consumer Staples 10.3 5.8 6.1
Info. Technology 8.6 24.7 9.9
Health Care 7.8 13.8 13.1
Energy 3.4 6.0 10.8
Materials 1.7 3.1 4.1
Real Estate 0.9 3.8 5.4
Utilities 0.0 2.9 5.8
Telecom 0.0 1.8 3.4
Cash & Other 3.5 0.0 0.0

Portfolio Characteristics Vs. Benchmark2

As Of June 30, 2018

All Cap Select Composite Russell 3000 Index Russell 3000 Value Index
Median Forward P/E 19.2x 18.2x 16.5x
Median Trailing P/E 19.9x 22.1x 20.1x
Weighted Average Dividend Yield 1.3% 1.8% 2.5%
Median Price / Book 2.4x 2.5x 1.8x
Median Price / Sales 1.6x 2.5x 2.1x
Median Market Cap. $16.0B $1.8B $1.8B
Weighted Average Market Cap. $88.8B $173.9B $102.4B
Portfolio Turnover 5 Year 70% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 93% / 94% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 112% / 89% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 109% / 92% —   —  

1 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds

2 Source: FactSet.

3 Source: Morningstar Direct. Active share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference.

4 The Russell 3000 Index is the core benchmark.

The Russell 3000 Value Index is the value benchmark.

Source: eVestment Analytics based on monthly returns (gross of fees) from 7/1/00 – 6/30/18.

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