Global Equity Investing
The Global Equity strategy invests in a concentrated portfolio of companies from around the world that generate high free cash flow, have strong balance sheets and consistently return cash to shareholders.
A global strategy holds potential to deliver benefits for investors over an approach of employing separate U.S. and international portfolios. An actively managed global strategy can provide greater concentration. It may also be more responsive to shifts in opportunity and to changes in the relative fundamental strengths of individual companies as a result of demographic, macro or geopolitical forces.
Companies that fit our investment criteria for high free cash flow tend to outperform broad market measures over the long term. The equity in these companies tends to protect capital in down markets and share price volatility is often lower than the market averages. Additionally, these companies typically pay dividends and have capacity to maintain or even increase those dividend payments in poor economic environments.
We believe a concentrated portfolio of these types of companies, identified through financial statement analysis and thorough research, will outperform the markets in the coming decades.