Large Capitalization Core Equity Portfolio
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 clients’ portfolios, IMVA employs both macroeconomic analysis and bottom-up fundamental analysis of individual companies. Ultimately, the portfolio managers seek a diversified basket of high-quality companies in the industry sectors that appear poised for good long-term growth. Among stocks within a given industry, potential positions are screened for quality and valuation. The portfolio managers attempt to avoid altogether those companies and sectors whose prospects are less certain, or whose valuation metrics appear extended. Exchange traded funds (ETFs) may also be used.
Investment Management of Virginia defines risk as permanent impairment or erosion of long-term fundamentals. Accordingly, the portfolio managers 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 approximately 40 to 50 positions.
Download the full description of the Large Capitalization Core Equity Portfolio in PDF format: 4Q2022 Large Capitalization Core Equity and Large Capitalization Balanced Portfolios Presentation
