The portfolio manager seeks long-term growth of capital and income by investing in a diversified portfolio of large cap value stocks with higher than average dividends. The manager seeks to invest in companies that are temporarily undervalued that offer a higher than average dividend yield. The manager then expects a key catalyst at the individual or sector level to alter the path of the firm’s future financial results. The PVG Large Cap Value Portfolio is for moderately aggressive investors who seek portfolio appreciation and dividend income.
Portfolio management and security selection encompasses both fundamental and technical analysis. Management employs internal and external intelligence in the execution of this approach.
The portfolio is invested in large-cap value companies with superior reward/risk characteristics. We utilize a highly disciplined quantitative process to identify inefficiently priced large-cap stocks with high dividends and low P/S, P/E, or P/B ratios. Our unique value methodology also includes a distinctive sector style which combines the attributes and low correlations of four major sectors of the economy; healthcare, energy, financials, and technology.
Selections of large cap value firms are primarily based upon upside potential, but also risk control. Firms that meet the criteria for inclusion in the portfolio generally offer high dividends, low beta, and low cross correlations with other stocks within the portfolio. Management also considers a firm’s credit rating, balance sheet, and valuation to control downside risk. Firms selected for inclusion in the portfolio most often have leadership positions in their respective industry with a strong financial standing and a low historical valuation.