Our US Value strategies seek to generate alpha through fundamental, bottom-up security selection. Our rigorous approach focuses on finding quality businesses that sell at a discount to our assessment of the company’s fair value.
We invest in companies when the market is underappreciating an existing business or its improving future value, or when it is unfairly punishing a stock due to news which we believe to be 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.
We seek high-quality stocks with underappreciated future catalysts which we believe to be trading at discounts, to true intrinsic value. Our quality-oriented approach has produced compelling risk-adjusted returns primarily driven by stock selection over the long-term.
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 obtain deep insight.
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 GSAM Fixed Income team.
Our structure allows us to implement stock research quickly and potentially identify positive change or catalysts in companies before it is recognized more broadly by the market. Decision making is placed in the hands of sector experts, creating crisp execution, a high degree of accountability and team stability. Our culture of intense team debate and devil’s advocacy helps flush out investor biases and complacency.
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 Goldman Sachs Asset Management and firmwide risk management teams.
Our US Value strategies seek long-term capital appreciation by investing primarily in the equity securities of companies in US markets using a variety of technology-driven techniques.
We seek to harness the power of Big Data to uncover new and previously undiscovered investment opportunities before the broader market prices them in. Our investment process is built upon rigorous bottom-up research, repeatable security selection and risk awareness, and has evolved over time to include more nuanced and unconventional data. Our culture of research, combined with specialized industry knowledge and technological advancement, continues to drive evolution in our process as we search for robust, diversified sources of return. Our approach is founded upon the following principles:
Data is collected globally from a wide variety of sources including earnings call transcripts, patent filings, news and web traffic. With the help of technology, our portfolio management team organizes this information to extract potentially compelling investment opportunities.
Investors have access to an enormous amount of information on every public company—information that can potentially influence stock prices and other investment opportunities. Our team leverages advanced analytics and sophisticated processing technologies, such as machine learning and natural language processing, to extract value and actionable insights from this flood of information.
As the rate of data production accelerates, adept human judgment becomes an increasingly essential tool to find signals in the noise. Our approach combines the investment acumen of our experienced investment professionals with advanced technologies to potentially gain an informational advantage.
Robust, on-going research effort
Our research team consists of many well-trained and highly experienced professionals who are constantly focused on enhancing every aspect of the investment process. We combine experienced economic insight with non-traditional data sources to provide perspectives on companies that other investors may not be seeing.
Proprietary daily risk models
We have developed proprietary, process-specific daily risk models that offer numerous potential advantages over third-party models. Our portfolio construction process utilizes these models to manage risk and allocate risk only where we believe there is potential for positive returns.
Disciplined, comprehensive investment approach
We have an extremely systematic and disciplined approach to investing. Our process allows us to assess all of the stocks within our investment universe on a daily bases. By employing a rules-based approach, we aim to produce repeatable results from intended sources of return.
Independent risk management group
We seek to be on the cutting edge of risk management. We leverage an independent Market Risk Analysis (MRA) department that monitors the risk of all the division’s products and portfolios independent of the portfolio management process. The department has developed a division-wide architecture that aims to track the absolute and relative risk level taken by each of the portfolios under management.
For more information, please contact your GSAM relationship manager