ABOUT US EPOCH INSIGHTS INVESTMENT APPROACH STRATEGIES & RESULTS IN THE NEWS

Dividends by Another Name

At Epoch, we invest in companies that we believe are good capital allocators. This means finding companies that have a track record of successfully investing free cash flow for profitable growth and  returning excess free cash flow to owners. If management does not have high-ROIC projects to pursue, including acquisitions, the "next best use" of that cash is to return it to the owners. We see dividends, share repurchases and debt pay-downs as equivalent ways to achieve that objective. 

 

Dividends by Another Name

David Pearl on Money Talk - February 18, 2015

David Pearl, Epoch's Co-CIO and Portfolio Manager, speaks with Kim Parlee about the U.S. economy's sustainable recovery and the structural changes we are experiencing within employment, including a technology revolution and a protracted rebound in wages. David also highlights three stocks within economically sensitive sectors that we believe will benefit from these trends. 

David Pearl on Money Talk - February 18, 2015

Pensions & Investments: As equity drivers shift, allocations will need to change

Bill Priest was recently featured in Pensions & Investments highlighting the growing importance earnings and dividends will play as valuation multiple expansion becomes less of an explanatory variable in equity returns. 

Pensions & Investments: As equity drivers shift, allocations will need to change
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We are global equity investors with a distinct perspective on the long-term drivers of shareholder return.

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OUR INSIGHTS

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Advantage from Perspective

Long-term investment success demands a focus on essential truths that are not always obvious. We focus on investing in companies with the enduring elements that create value: free cash flow and managements committed to providing positive returns to shareholders. Like the companies in which we invest, we are committed to transparency. This includes sharing our global market perspectives and insights that help drive our investment decisions.

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OUR INVESTMENT PHILOSOPHY

Investors often view a company through the prism of accounting measures such as price-to-book value and price-to-earnings ratios. Epoch adopts a different approach. Earnings growth and dividends drive shareholder returns, and they come from a single source: cash flow. We focus on companies that are growing free cash flow and allocating it intelligently.

Reinvesting cash flows in internal projects or acquisitions is preferred when those actions will generate returns above the cost of capital. Otherwise, we believe company managements should return excess cash to shareholders through dividends, share buybacks or debt repayments -- collectively known as "shareholder yield."

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IN THE NEWS

Bill Priest interviewed by BNN’s Frances Horodelski - February 6, 2015

Bill Priest recently appeared on the Business News Network's Legends of Investing where he discussed the impact macroeconomic factors are having on global markets.

Reuters Insider - Investment Strategies Featuring Eric Sappenfield

Eric highlights that the Shareholder Yield strategy is focused on collecting dividends, share buybacks and debt reduction rather than attempting to capitalize on valuation opportunities.View Video > 

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