Investment Teams

U.S. Value Equity

 

To fulfill our mandate, we rely on the deep experience and independent thinking of our expert research team – not research from outside sources. With their intimate knowledge of the markets, our team members search out untapped opportunities, including those that fly under the radar of larger firms with a more formulaic research approach.

Investment Philosophy

Advisory Research adheres to a disciplined, bottom-up, value approach to investing. By focusing on securities that are selling at a discount to our assessment of their net asset value, Advisory Research seeks to generate competitive long-term returns while minimizing investment risk. The companies that provide us the best opportunities are those with undervalued assets or stocks that have been abandoned by the institutional investment community. We identify investment opportunities by performing comprehensive bottom-up analysis and due diligence, which allows us to assess company-specific risk and long-term upside potential. We then construct portfolios that are broadly diversified yet focused enough to allow for excess returns. The strength of our conviction in each security translates to investments being held for the long term. Our highly disciplined approach to value investing guides our thinking and frames our decision making through every step of the investment process. We believe that investing in these securities has the potential to create long-term value for our clients and to protect capital through market downturns.

Process

We apply our value-based philosophy through a disciplined and consistent investment process. We utilize a bottom-up, fundamental investment approach and invest in stocks that we believe are trading at a discount to net asset value and that have, in our opinion, minimal downside risk. Bottom-up research is the foundation of our process, with a focus on balance sheet analysis. Our investment team searches for profitable, asset-rich companies with appropriate leverage that are trading at a discount to our assessment of net asset value. We perform extensive quantitative financial and business analysis to determine the possible risk of an investment. To do so, we convert the accounting statements from “accounting” to “economic” reality. Significant time is spent revaluing both the assets and the liabilities to determine the net asset value of the company. Then, we research the company to see if it has an identifiable path to unlock and enhance value. We are focused on determining the upside of a particular company and emphasize senior management interviews, company visits and competitor analysis to do so.