Our 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.
Sterling’s Fundamental Equity 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.
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.
Sterling’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.
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.
- Mid Cap Value Equity
- Small Cap Value Equity
- International Focused Factor
- Large Cap Value Focused Factor
- Small Cap Value Focused Factor
- Equity Income
- Focus Equity
- Global Leaders
- Special Opportunities
- Mid Cap Value
- Real Estate
- Small Cap Value