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U.S. Large Cap Equity

Philos Parnters Core Select, our flagship large-cap equity strategy, employs a long-term business-ownership approach within a discount to intrinsic value framework. Our goal is to provide investors with long-term capital growth. We aim for attractive absolute returns while minimising the risk of permanent capital loss in each investment. Our investment strategy is founded on a thorough examination of companies from the ground up.

We look for established, cash-generating businesses with strong management teams that are market leaders in critical products and services, and we buy their publicly traded equity shares at a discount to their true value*. Estimates of intrinsic value are based on a proprietary study of future free cash flows and returns on capital. We use a methodical investment selection procedure that considers the company, management, and other factors.

Philos Parnters Core Select will invest in 25 to 35 North American companies with market capitalizations of more than $5 billion, as well as a few companies based in other developed regions outside of North America. Our average holding period is three to five years, and we typically sell investments if their intrinsic value exceeds our projections.

Investment Criteria

Companies that have the following business, managerial, and financial characteristics, in our opinion, are well positioned to create value for shareholders in a wide range of economic and market conditions. 

Characteristics of Business 

  • Products and services that are necessary
  • Loyal customers • You can take the lead in a profitable market sector or business.
  • Long-term competitive advantages

Management Qualities 

  • Reliable operators
  • Appropriate capital allocations
  • Significant share ownership

Financial Characteristics

  • A strong balance sheet and free cash flow
  • High rates of return on investment

Risks
Philos Core Select may invest heavily in a small number of issuers, potentially increasing the risk of price volatility.

*There is no guarantee that the target will be reached.

NOT FDIC INSURED   NO BANK GUARANTEE   MAY LOSE VALUE