Our investment philosophy is based on price and prospects, premised on the unique nature of value investing.
To achieve our objectives of higher yield, lower volatility and a favorable performance pattern, we invest in companies when the market is underappreciating an existing business or its improving future business, or unfairly punishing a stock due to news which we believe is short term.
We invest in companies that have quality characteristics such as strong or improving balance sheets, sustainable competitive or operating advantages, shareholder-focused management teams or potential catalysts for positive change.
Rigorous fundamental research
We conduct bottom-up, fundamental research that is rigorous and often contrarian, and we apply dynamic, industry-specific valuation metrics. We stick to the disciplined approach of buying strong business franchises with excellent management teams. We also leverage frequent access to company management teams to gain deep insight.
Wide opportunity set
We conservatively invest across both traditional and non-traditional sources of income. This potentially increases portfolio diversification and may produce higher yields than traditional fixed income without taking on excessive risk.
We understand that US businesses are intricately linked with the global economy. Our team leverages real-time insights from a broader research team that works across all market caps, as well as insights from our Fundamental Equity colleagues across the globe and the Global Fixed Income team.
Favorable industry trends
Low rates and a slow growth backdrop is positive for investor demand, making the investment attributes of our income strategies more attractive, especially compared to bonds (they may offer a higher yield, predictable growth, greater interest rate/inflation resiliency and cheaper valuations vs. traditional bonds).
We offer the ability to incorporate call writing, which we believe will help us better deliver on our stated objectives.
Multifaceted risk management
We employ a comprehensive approach to risk management and work with the Fundamental Equity team’s Chief Risk Officer to scrutinize portfolio risks, avoid unintended factor bets and work towards our goal of generating excess returns through stock selection. We also seek to benefit from the robust resources of independent GSAM and firmwide risk management teams.
For more information, please contact your GSAM relationship manager