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

Our goal is to produce an efficient portfolio on a risk/return basis. We undertake detailed fundamental research on individual companies, diversify across attractive companies and economic sectors, limit individual holding sizes, and employ a strict sell discipline. If we have identified a good business at a good price, time is our ally as patient investors. As a result, we have relatively low portfolio turnover in most strategies. Epoch’s Investment Policy Group, representing the most experienced members of the investment team, provides a macro-level perspective that portfolio managers may use as a context when evaluating individual companies and sectors. This is combined with rigorous quantitative and qualitative analysis that incorporates the following components:

Analyze the Business:

Determine the sustainability of the business, earnings drivers, barriers to entry, and competitive advantages.

Understand the Cash Flow Structure:

Focus on companies that generate cash earnings and assess the quality and character of those earnings to determine the net cash flow from the business.

Relate Cash Flow to Enterprise Value:

Examine relevant claims against net cash flow and determine the necessity of these claims to maintain and grow the business. Evaluate how management will use free cash flow. Value the cash flow stream and compare it to enterprise value to determine the attractiveness of the investment.

Evaluate Management Quality:

Identify managements with the intention and demonstrated ability to create shareholder value.

Seek Unrecognized Assets:

Uncover, where possible, hidden, undervalued or underutilized assets, especially in under-researched small- and mid-cap companies.

Manage Risk:

Risk management is integrated into each step of the investment process. We have a team dedicated to quantitative research and risk management, ensuring that the portfolio construction process takes into account aggregation risks and diversification objectives. The goal is twofold: first, to minimize stock-specific risk through greater diversification, and second, to avoid unintended risks or biases at the portfolio level. Our Chief Risk Officer is a co-portfolio manager of every strategy we offer. As a result, the lead portfolio manager is continually aware of these risks. While the research and security selection methodology is the starting point for all of Epoch's equity strategies, the portfolio construction process is adaptable to the specific parameters of each investment strategy and our clients’ individual guidelines.

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