The Valuation 50™ is a Valuation Driven™ investment strategy composed of a focused group of 50 stocks designed to consistently outperform the S&P 500 index in a tax efficient manner.
The Valuation 50 is managed by a team of analysts who conduct a systematic process that combines fundamental and qualitative research work, with valuation as the core guideline. In sum, the Valuation 50 aims to identify high quality and undervalued companies, which have the capacity and potential to thrive in economic cycles and outperform the overall market through an extended holding horizon.
Performance Source: Morningstar
The Valuation 50 portfolio is sector neutral to the SP 500, and the securities within each sector of the portfolio are equal weighted. Further, within each sector the holdings are selected to minimize correlated returns as much as possible.
Valuation Driven™ Investment Process
Valuation Driven™ Investing begins and ends with calculating the intrinsic value of every stock in a benchmark against which a portfolio is constructed, and comparing those values against traded prices. The undervalued securities identified from this process are then evaluated on the basis of additional proprietary Applied Finance metrics and/or by an analyst team to determine the securities most likely to outperform the benchmark.