Intrinsic Value Opportunity Equity

The Intrinsic Value Opportunity strategy is a disciplined and rules-based application of Price to Intrinsic Value (P/IV). It takes emotion out of the decision process and invests in an unconstrained manner in those areas that show the most promise. It also provides a unique method of categorizing all the important variables our portfolio management team believes are critical in making a decision to buy or sell a stock. Securities purchased must be part of the S&P 500.

Investment Philosophy: We select the least expensive 1/3 of the S&P 500 universe based on proprietary fundamentally based measures of P/IV. From this third of the S&P 500, we choose the ten best ranked in each of our technical strength, financial strength, and profitability strength factors. There is no market capitalization criterion, so we may buy the largest cap or smallest cap stocks in the index, and sector is not a variable in building the portfolio.

Objective: This strategy is designed to outperform the Russell 1000 Value and S&P 500 indices over full market cycles and generate alpha in the process (300 basis points over the index on a 3-5 year basis). Sierra Investment Partners, Inc. chose Todd Asset Management LLC (TAM) as its exclusive sub-advisor to offer Intrinsic Value Opportunity to the Taft-Hartley marketplace. The strategy is based on the P/IV philosophy, which is the basis for all of TAM’s product strategies, and utilizes a factor ranking process that has produced outperformance. The product is adaptable to different markets/indices and risk regimes, and will change holdings as market conditions warrant.