BEVERLY, Mass.–(BUSINESS WIRE)–#DarrellCrate–The Easterly Investment Partners (EIP) All Cap Value Strategy celebrated its 30th anniversary on January 1, 2022. Equally rare is the strategy’s consistent success: over the three decades since inception, it has outperformed both its Russell 3000 Value Index benchmark and the S&P 500 Index.
“I want to congratulate Richard Snow, EIP’s Co-Chief Investment Officer, and Senior Portfolio Manager Joshua Schachter for managing the All-Cap Value Strategy to its 30-year milestone,” said EIP Chairman Darrell Crate. “This accomplishment comes not only through their talent, skill, and hard work but also through an unparalleled commitment to meeting the needs of the strategy’s clients.”
Earlier this year, Snow’s boutique value equity firm, Snow Capital Management, joined EIP to take advantage of the firm’s operational and distribution resources. “Joining EIP allowed us to plug into Easterly’s talented and experienced sales and marketing team in addition to its robust operations, technology, compliance and human resources platforms so we could solely focus on what we do best: value equity investing.” We look forward to continuing our successful track record in the future as a part of EIP,” says Snow.
The All-Cap Value Strategy seeks to provide long-term capital appreciation through an equal-weighted portfolio of value equity securities across the entire market capitalization spectrum. It applies a disciplined, bottom-up investment process that uses fundamental research to identify contrarian value stocks. Typically, the portfolio is fully invested and includes the team’s 35-40 highest conviction investment ideas.
“We believe in and do not deviate from our investment process, regardless of what the market is doing,” said Snow, who started the strategy in 1992 and continues to co-manage it with Schachter. “We perform deep fundamental research on every name before it enters the portfolio and create a thesis based on certain questions – why is the stock price down, how does our view differ than the street, and what are upcoming catalysts that will allow the price to re-rate upward? This process creates consistency, which in turn, helps us manage risk, the key to long-term success.”
The team’s contrarian approach is clear in that it invests in companies whose stock price is at or near 52-week lows, but that have strong balance sheets, stable free-cash-flow and, importantly, long-term fundamentals that are underappreciated by the market. The team then identifies catalysts, that once brought to light, should lead to an increase in the stock price.
Through the third quarter of 2021, the strategy’s composite had trailing one-year performance of 49.23%, compared to the Russell 3000 Value Index’s 36.64%. It also outperformed its value benchmark over three years (11.49% versus 9.94%) and five years (11.70% versus 10.94%). Since inception, the strategy has returned 13.41% on an annualized basis compared to its benchmark’s 10.10%.*
Looking ahead, Snow said, “What has made the All-Cap Value Strategy so consistently successful through three decades is our refusal to waiver from our process. As contrarian investors, we aren’t surprised by the inconsistency in the markets – we succeed because of it, expecting market changes and dislocations and identifying the companies that will prosper as a result.”
The All Cap Value Strategy is available as a separate account. For more information on the strategy, visit https://easterlyip.com/all-cap-value/.
About Easterly Investment Partners
Easterly Investment Partners (EIP) is the traditional, fundamental based investment arm of Easterly Asset Management’s multi-affiliate platform. EIP’s current investment line-up spans the entire value equity market cap spectrum. Guided by a consistent contrarian investment philosophy, our value strategies are led by industry veterans and experts that have refined their craft and delivered strong performance through multiple market cycles. As of November 30, 2021, EIP had approximately $3 billion in AUM. For more information, please visit EIP at https://easterlyip.com/.
*Performance sources: EIP & Russell.
Disclaimer: The views expressed herein are solely the opinions of Easterly Investment Partners (EIP). Although the statements of fact and data in this report have been obtained from, and are based upon, sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions in this report constitute the Firm’s judgment as of the date of this report and are subject to change without notice. This communication is intended for informational purposes only and does not constitute a solicitation to invest money nor a recommendation to buy or sell certain securities. The investments discussed herein may not be appropriate for all investors. Investment products are not FDIC insured and may lose value. Individual investment decisions should be discussed with a financial advisor. Investments in small, mid-cap and micro-cap companies involve additional risks such as limited liquidity and greater volatility. Past performance is no guarantee of future results.
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