An Intrinsic Value & Stewardship approach to U.S. large caps — built to deliver higher expected returns with better risk characteristics.
Since inception in 1998, the Intrinsic Value Stewardship strategy has outperformed the S&P 500 by over 200 bps annually (through 6/30/25) — demonstrating how valuation discipline and stewardship awareness drive long-term advantage.
Growth of $1,000 vs. S&P 500 (since inception) as of 6/30/2025
25+ Years of Intrinsic Value & Stewardship in Large Caps
👉 View the Full Pitchbook for detailed performance data, risk metrics, and the research framework that’s driven consistent outperformance since 1998.
Why It Matters
For investors seeking smarter core exposure, Intrinsic Value Stewardship offers a better way to own U.S. large caps — rooted in economic fundamentals, not speculation.
The framework removes overvalued companies and poor stewards to create a Safer Market® experience with:
- Shallower drawdowns
- Faster recoveries
- Superior long-term outcomes
Rethinking Traditional Indexing
Market-cap indexes systematically overweight the most expensive stocks — rewarding size and momentum instead of fundamentals. That leaves investors exposed to unrewarded risk.
Our process filters out:
- Overvalued companies trading above intrinsic value
- Poor stewards that destroy shareholder wealth through inefficient reinvestment or dilution
By weighting on intrinsic value, not market cap, the strategy builds a resilient, diversified portfolio of large-cap leaders positioned for sustainable growth.
A Proven Framework for Long-Term Investors
Across market cycles, this disciplined combination of valuation and stewardship has consistently identified quality businesses at attractive prices — delivering higher expected returns with lower risk over time.
Important Information:
Applied Finance Live Model Data – Objective and Repeatable Security Analysis Process
The returns for the Valuation Stewardship® model utilize live, out-of-sample data from our extensive research database. This ensures our proprietary factors are free from hindsight bias, reflecting real market conditions as they occur. Our process, rooted in traditional security analysis, is both objective and repeatable.
Since 1995, Applied Finance has calculated over 20 million point-in-time, out-of-sample company valuations. Each week, we add approximately 20,000 new intrinsic value estimates, constantly enhancing our strategies and deepening our market insights.
Important Information
Data source: eVestment.
The Valuation Stewardship® model portfolio is a long-only strategy comprised of U.S. large-cap equities believed to offer superior total returns over long-term horizons. The model uses published data dating back to 1998, selecting securities with attractive valuations and broad sector exposure.
The Valuation Stewardship® is a live hypothetical model portfolio and does not reflect actual client investments. Performance shown is based on hypothetical fully-invested portfolios: Gross Performance excludes all fees/expenses; Net Performance deducts an assumed annual investment management fee. Individual accounts may differ due to cash levels, fees, taxes, and other factors. Performance is calculated on a pre-tax basis and does not reflect non-U.S. withholding taxes. Past performance is no guarantee of future results.
Holdings and weights in the Valuation Stewardship® are subject to change. References to securities are for informational purposes only and do not constitute an offer to buy or sell any security. Actual account results may differ materially.
Information herein was obtained from sources believed reliable, but Applied Finance Capital Management LLC does not guarantee accuracy or completeness. This material is not intended as investment advice or as a primary basis for investment decisions. Opinions and projections reflect judgment as of the date shown and are subject to change. Applied Finance Capital Management LLC, its owners, employees, and/or clients may hold positions in securities discussed.
Key Definitions:
• Index – S&P 500: Market-cap-weighted index of 500 widely held U.S. stocks, often used as a market proxy.
• TR: “Total Return.”
• Active Share: Fraction of portfolio holdings that deviate from the benchmark.
• Upside Capture Ratio: Measures a strategy’s performance in up markets relative to the benchmark.
• Downside Capture Ratio: Measures a strategy’s performance in down markets relative to the benchmark.
• Live Model: A model that uses published data, in accordance with the original parameters of the strategy.