Walden manages equity portfolios utilizing a
range of quantitative and qualitative techniques with a primary focus on
portfolio composition and security selection. The result is a portfolio of
higher quality stocks with carefully measured style, valuation, and industry
exposures. This approach is applied across multiple styles, including core,
growth, value, mid cap, and small cap.
Large Cap Core
Since 1981 our large cap core approach has
focused on diversification and higher financial quality. Our portfolio
composition policy considers sector exposure and style factors, while our
quality emphasis guides security selection. Our high quality core equity
portfolios seek to outperform the S&P 500 with less risk over a market cycle.
Large Cap Growth
Introduced in 1996, Walden’s high quality growth
style seeks to invest in companies judged to have superior growth prospects. Our
portfolio companies generally exhibit earnings growth in excess of GDP growth.
We also strive to avoid stocks we judge to be overvalued. Walden’s high quality
growth portfolios are designed to outperform the average growth manager over
time with less risk.
Large Cap Value
Also introduced in 1996, Walden’s value
portfolios seek to invest in higher quality, yet undervalued stocks. We
generally avoid “deep value” securities and their associated risks. Through the
application of quality screens to low valuation companies, Walden seeks to
construct value portfolios that capitalize on improving valuations while
minimizing the risk of underperformance due to deteriorating business prospects.
Mid Cap
With our mid cap product, Walden strives to
achieve long-term capital appreciation through a portfolio of generally higher
quality, medium sized companies. Investments are diversified across a wide range
of industries, with allocations varying over time based on relative valuations
and economic expectations.
Small Cap (Innovations)
Small Cap Innovations portfolios invest
primarily in small capitalization companies that offer significant benefit to
society through innovation in their products or processes. The portfolios are
broadly diversified and, in general, seek to have financial characteristics
superior to small cap companies overall. Typical portfolio holdings are
companies focused on alternative energy, career education, community banking,
higher quality medical care, or natural foods. The portfolios seek to outperform
the small cap market with lower levels of risk. Walden Small Cap Innovations
portfolios are suitable only for investors able to assume the higher level of
risk associated with small cap stocks for that portion of their assets.
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