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 September 30, 2018

MetLife, Inc. Financials 5.4%
Berkshire Hathaway, Inc. (Cl B) Financials 5.3
Alphabet, Inc. (Cl A) Communication Services 4.1
United Continental Holdings, Inc. Industrials 4.0
Johnson Controls International PLC Industrials 3.9
Loews Corp. Financials 3.8
Brighthouse Financial, Inc. Financials 3.8
Bank OZK Financials 3.5
Discover Financial Services Financials 3.5
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 3.5
Total As % Of Net Assets 40.7%
Total Number Of Equity Holdings 36

Sector Allocation1
As Of September 30, 2018

Select Composite Russell 3000 Index Russell 3000 Value Index
Financials 33.1% 13.7% 23.2%
Industrials 14.8 10.4 8.4
Cons. Discretionary 11.8 11.0 6.5
Health Care 10.3 14.7 14.5
Communication
Services
8.2 9.0 6.5
Consumer Staples 6.7 5.6 5.9
Energy 3.5 5.7 10.5
Info. Technology 2.5 20.7 9.8
Materials 2.5 2.9 3.9
Real Estate 0.8 3.6 5.1
Utilities 0.0 2.8 5.6
Cash & Other 5.8 0.0 0.0

Portfolio Characteristics Vs. Benchmark2

As Of September 30, 2018

All Cap Select Composite Russell 3000 Index Russell 3000 Value Index
Median Forward P/E 17.5x 18.4x 16.6x
Median Trailing P/E 19.5x 21.9x 19.6x
Weighted Average Dividend Yield 1.3% 1.7% 2.4%
Median Price / Book 3.1x 2.5x 1.8x
Median Price / Sales 2.5x 2.5x 2.1x
Median Market Cap. $16.1B $1.8B $1.7B
Weighted Average Market Cap. $94.7B $201.8B $111.6B
Portfolio Turnover 5 Year 70% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 93% / 94% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 111% / 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 – 9/30/18.

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