The Large Capitalization Core Equity Portfolio
Description Performance and Statistics Quarterly Commentary
The Large Capitalization Core Equity Portfolio's equity investment style emphasizes quality large capitalization growth companies with lower than average volatility and the potential for competitive risk-adjusted total returns.
Investment Management of Virginia’s Large Capitalization Core Equity investment style emphasizes high quality. On a portfolio basis, prospective holdings should exhibit the following characteristics:
- Sustainable operating margins
- Consistent earnings growth
- Favorable returns on equity
- Long-term financial strength
- Sound management
- Industry leadership.
In selecting stocks for inclusion in our clients’ portfolios, we employ both macroeconomic analysis and bottom-up fundamental analysis of individual companies. Ultimately, we seek a diversified basket of high-quality companies in the industry sectors that appear poised for good long-term growth. Among growth stocks within a given industry, we screen for quality and valuation. We attempt to avoid altogether those companies and sectors whose prospects are less certain, or whose valuation metrics appear extended.
Investment Management of Virginia defines risk as permanent impairment or erosion of long-term fundamentals. Accordingly, we will consider selling a security based on the presence of one or more of the following conditions:
- Material earnings shortfall and/or negative earnings revisions
- Price target achieved in advance of supporting fundamentals
- Change detected in management integrity/commitment
- Good, alternative investment opportunity identified.
A typical equity portfolio includes 30 to 35 positions.
Download the full description of the Large Capitalization Core Equity Portfolio in PDF format here.