Equities » Sterling Capital

Overview

Our primary goals are long-term, consistent investment performance and exceptional client service. We achieve these goals by maintaining a consistent process for managing risk and a complete focus on developing strong client relationships.

Sterling Capital's Equity teams manage a diverse family of products. Our investment philosophy is built on a foundation of value investing while avoiding risk to permanent capital impairment. This process helps us deliver attractive long-term risk adjusted performance.

Equity Opportunities

Sterling Capital’s Equity Opportunities Team’s investment process is built upon four intuitive and time-tested pillars that have proven to be additive to long-term performance. The pillars guiding investment decisions are above average growth, above average profitability, below average valuation and stronger than average financial strength. Above all, the team uses the four pillars to adhere to its key practice of buying quality business.

Product Profiles

Equity Income

Focus Equity

Global Leaders

Special Opportunities

Focused Factor/Behavioral Finance

Within the suite of focused factor based equity products, Sterling Capital Management employs techniques that seek to capitalize upon Behavioral Finance based principles. Investors are prone to certain biases and heuristics (mental shortcuts) that when coupled with greed, fear and ego can often lead to anomalies within the financial markets. Our investment process, with the value and momentum factors that are implemented to the portfolio construction techniques that are employed, produces strategies specifically designed to capitalize upon investor behavior.

International Focused Factor

Large Cap Value Focused Factor

Small Cap Value Focused Factor

Fundamental

Sterling Capital’s Fundamental Equity Team concentrates its investment strategy on stocks of small to medium-sized companies that generate strong cash flows, trade at a significant discount to intrinsic value and are well-financed. This approach creates a focused portfolio of stocks that has produced attractive risk-adjusted returns over time.

Product Profiles

Mid Cap Value Equity

Relative Value

The Sterling Capital Relative Value Team manages Small Cap, Mid Cap, and Real Estate equity portfolios within a relative value framework. The team employs a combination of quantitative and fundamental research to identify stocks that are undervalued versus their peers, yet possess unique catalysts to drive potentially outsized share price appreciation. The team aims to add value primarily through positive stock selection across economic sectors while maintaining high levels of “active share.” Low historical portfolio turnover is driven by the team’s long term perspective as holdings typically possess multi-year catalysts.

Product Profiles

Real Estate

Small Cap Value

Equities

Insights

04.04.2024 • Charles Wittmann, CFA®

The Lead - "Seeking Advantaged Economies of Scale"

- One important advantage we seek in large capitalization stocks is having dominant market shares that provide economies of scale. - Economies of scale may make a company more profitable and earn higher returns on its capital than its competitors. - We believe it is possible to identify companies that gain scale, market share, and returns at the expense of competitors. - As we have stated for close to two decades as part of our investment philosophy, we believe size usually translates into cost advantages in production, marketing, and research and development expenditures that can be re-invested back into the business, making such advantages sustainable.

03.05.2024 • Charles Wittmann, CFA®

The Lead - "Advantaged Market Share"

- What makes an advantaged company? - In our view, one notable characteristic of an advantaged company is growing its market share. - Simply put, we believe companies with greater market share are more profitable. - We seek to field a portfolio of advantaged companies with strong and potentially growing market shares to position our clients to win.

03.01.2024

4Q23 Equity Income SMA Review and Outlook

The 4Q23 Equity Income SMA Review and Outlook reviews performance, holdings, and dividend growth within the strategy.

03.01.2024 • Shane Burke

The Federal Reserve During an Election Year - March 2024

2024 is expected to be one of the biggest election years in history, with more than 60 countries representing approximately half of the world’s population heading to the polls. The year will include multi-day legislative elections in India (the largest population in the world), Indonesia’s presidential election (the world’s largest single-day vote), and the globally-anticipated U.S. presidential election.

02.06.2024 • Charles Wittmann, CFA®

The Lead - "Actively Aware"

- By utilizing our investment process and our investment team, we believe we can build portfolios different from the benchmark and provide an opportunity to generate returns above the benchmark over time. - Ironically, many passive indexes make active bets themselves. In 2023, the S&P 500 Dividend Aristocrats suffered its worst performance relative to the S&P 500® Index since 1999. - We’ve believed for over 20 years that portfolio managers with material amounts of their net worth invested alongside clients incentivizes portfolio diversification and active adjustments, rather than a static index where there is no vested interest. Our mission is to generate above-average returns with below-average risk over time.

02.02.2024

Sterling Capital Management LLC to be acquired by Guardian Capital Group Limited

We are delighted to announce that Guardian Capital Group Limited has reached an agreement under which Guardian’s wholly-owned subsidiary Guardian Capital LLC will acquire Sterling Capital from Truist. Post-closing, Sterling Capital will become an independently-operated subsidiary of Guardian.

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