High Quality Core Equity Strategy
Emphasis on future capital appreciation. Principal risk and fluctuation is expected and acceptable over the intended long-term investment time horizon (in excess of 5 years). Portfolio will consist of equities and cash.
The First Foundation Advisors High Quality Core Equity Strategy seeks to exceed the returns of broad value indices, with less risk over a market cycle. We strive to capitalize on stock market inefficiencies by investing in high quality, large cap equities which are trading at a substantial discount to a conservatively estimated intrinsic value. All investment decisions are based on rigorous, bottom-up, fundamental analysis. Companies in our portfolio share many similar fundamental characteristics, such as: sustainable free cash flow, high return on invested capital, low debt levels, dominant market position, superior competitive advantage, and shareholder-oriented management. Portfolios are designed to be adequately, but not overly diversified with 30-40 securities across a broad range of economic sectors and industries. ADR’s are included as part of our global investment strategy. Cash levels are a result of available opportunities and are typically less than 10%.
Our disciplined, repeatable investment process seeks to consistently generate a portfolio characterized by a higher than market dividend yield, lower than market risk (as measured by beta and standard deviation), with competitive risk adjusted returns.
Managing Director of Equity Investments