Smart Investing: Long-term consistency
Our multiboutique firm has delivered thoughtful investment solutions and durable long-term performance for more than 85 years.
A focus on consistency over the long term
Francis X. Morris
Chief Investment Officer — Core Equity
We come in every day with the thought process of, let’s find good companies that have good business models that are attractively priced that we can do the underlying fundamental work on and add them to our portfolio.
Chief Investment Officer — Small-Cap Value / Mid-Cap Value Equity
I’ve been managing this fund since 1997, doing small-cap value the entire time. I’ve always had the same philosophy — I’ve always been a cash flow person, felt that that’s the real way to manage and evaluate what companies are worth.
Senior Portfolio Manager, Team Leader — Large-Cap Value Equity
We like to think of ourselves and our clients as business owners, certainly not traders. Longer time frames give the market and individual stocks a chance to work out their emotions, their mood changes. Over long time frames, business quality and earnings power win out.
Francis X. Morris
One of the things that is a hallmark of what we do has been consistent performance over a variety of market conditions. The reason why that is increasingly important is that in a marketplace that we think will have increased volatility, it’s important that a team be able to generate consistent returns through quality research, not only in terms of researching companies but also in terms of stock selection and ultimately putting names within the portfolio.
For me, the longer term is really looking at managements and companies and asking, “What will they deliver to me, as a shareholder?” And if it’s things that are positive — I tend to have a bias toward dividends, I tend to have a bias for share buybacks. I tend to have a bias against highly levered companies because then I can take the financial risk out of the equation. So, for me the longer term is being able to sift through the daily data, even the weekly data and the monthly data and say, okay where is the company going. What are their goals, what are they trying to achieve? And if it is in sync with our view as far as getting returns from the capital of the company, it tends to put the odds in our favor as a strong investment.
We also think that longer time frames mean fewer decisions. And fewer decisions can mean fewer mistakes and better long-term returns.