Overview
Inception
Date
12.31.2015
Account
Minimum
$100,000
Philosophy
Seeks Positions Featuring Attractive and Sustainable Multi-Year Return Profiles Underpinned by Businesses Perceived to Possess:
- Attractive Valuation
- Superior Financial Returns and Visible Reinvestment Opportunities
- Talented Management
Process
- Qualitative and Quantitative Screens Identify Opportunities
- Emphasis on Proprietary Primary Research and Due Diligence
- Candidates and Holdings Continuously Vetted by Investment Team to Optimize Risk/Reward
Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | Since Inception1 |
|---|---|---|---|---|---|---|
| Focus Equity SMA (Gross) | -9.83 | -2.48 | 8.32 | -0.45 | 9.51 | 14.73 |
| Focus Equity SMA (Net) | -10.52 | -3.92 | 5.17 | -3.37 | 6.33 | 11.41 |
The composite inception date is 12.31.2015. Effective 06.30.2023, the net of fee performance reflects the deduction of the maximum SMA bundled fee of 3.00% annually for all periods presented. Actual fees may vary by size and type of portfolio. Performance is preliminary and is annualized for periods longer than one year. Net of fees performance returns are presented net of the SMA bundled fee, which includes all charges for trading costs, advisory services, portfolio management, custody and other administrative fees. “Pure” Gross of fees performance returns do not reflect the deduction of any fees including trading costs: a client’s return will be reduced by the management fees and other expenses it may incur. Investment management fees are described in Sterling’s Form ADV 2A. Performance reflects the reinvestment of interest income and dividends and realized capital gains. The performance presented represents past performance and is no guarantee of future results. Performance is compared to an index: however, the volatility of an index varies greatly and investments cannot be made directly in an index. Market conditions vary from year to year and can result in a decline in market value due to material market or economic conditions. Sources: Russell Investments; Sterling Capital Management Analytics. Please refer to the GIPS Composite Report on the Fact Sheet linked above for additional disclosures.
Focus Equity SMA
Materials
SMA
Insights
07.03.2024 • Charles Wittmann, CFA®
- Economic indicators such as gross domestic product and the Institute for Supply Management Manufacturing Index recently showed slowing growth, while the Consumer Price Index remains stubbornly above the Federal Reserve’s target rate. Concerns over slowing economic growth amidst higher inflation, also known as stagflation, have emerged. - In such a scenario, we would note that quality and cash deployment (dividends and share buybacks) shine in a slow growth, higher inflation environment. - The problem recently is that the slowing economy has led to a slowdown in cash returned to shareholders in the form of dividends and share buybacks by the market. - We believe in the importance of preparation for potential uphill climbs as well as the value in finding investments that raise their cash returns to shareholders.
07.02.2024
Sterling Capital Management LLC joins Guardian Capital Group Limited
Sterling Capital Management LLC announced today the completion of its acquisition by Guardian Capital LLC, a wholly-owned subsidiary of global asset manager Guardian Capital Group Limited.
07.02.2024
Sterling Capital joins Guardian Capital Group Limited
“We are thrilled to announce the completion of Sterling’s acquisition by Guardian Capital Group, a global asset manager. We are also thankful to join an organization that shares our culture and values in protecting our clients’ assets - and we are truly excited for our bright future together!” – Scott Haenni, Sr. Managing Director & CEO at Sterling Capital Management
06.27.2024 • Jeffrey Ormsby, CFA®
Fixed Income and Federal Reserve Rate Cuts: How Should We Expect Fixed Income to Perform?
As one would expect, in most historical periods where interest rates were declining, fixed income total return has been good, with investors capturing the coupon income as well as benefiting from the increase in prices as rates fall. Looking at the history of the Bloomberg Aggregate Bond Index since 1988, in the previous five Federal Reserve (Fed) rate-cutting cycles, the index posted annualized returns averaging north of 8%.
06.13.2024 • Andrew Richman, CTFA
When It Comes to Fed Policy, Follow the Data, Not the Dots
Andy Richman's update on the June Federal Open Market Committee meeting.
06.05.2024 • Charles Wittmann, CFA®
The Lead - "An Indicator of Business Confidence"
- Several notable companies have elected to inaugurate a quarterly dividend this year, while 47 companies in the U.S. stopped paying dividends during the COVID-19 crisis and have yet to reinstitute one. Why? - We would suggest it comes down to the ability to pay an ever-increasing dividend alongside their confidence in their business’s future. - In the current period of fewer dividend initiations, slower dividend growth in the market, and household names cutting their dividends, we believe there are several lessons to learn.
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