INVESTMENT PHILOSOPHY & STRATEGY

when market volatility produces mispriced stocks, value managers like us pinpoint great opportunities

our tried & true philosophy

Our global investment philosophy is based on two basic beliefs: (i) country and industry factors are important determinants of security prices, and (ii) global market fluctuations produce mispriced stocks. Global markets have proven generally efficient over time, but investor behavior creates volatility that leads to inefficiency somewhere in the world. During these periods, the stock price may not reflect a company’s long-term fundamental valuation and/or future cash flows; this is the opportune time to buy such companies. Learn more about Polaris’ investment criteria leading to buys and sells. 

statistically patient investment philosophy

Our global investment philosophy is based on two basic beliefs: (i) country and industry factors are important determinants of security prices, and (ii) global market fluctuations produce mispriced stocks. Global markets have proven generally efficient over time, but investor behavior creates volatility that leads to inefficiency somewhere in the world. During these periods, the stock price may not reflect a company’s long-term fundamental valuation and/or future cash flows; this is the opportune time to buy such companies. Learn more about Polaris’ investment criteria leading to buys and sells.

Polaris’ “statistically patient” global investment philosophy strongly emphasizes valuation over growth, and our investment  team capitalizes on normal market fluctuations to opportunistically buy undervalued companies. Select companies that enter the portfolios typically generate strong sustainable free cash flows and have conservative balance sheets. These companies are capable of performing well in difficult economic environments, while potentially performing admirably in growth cycles too.

Our global investment philosophy was developed more than 40 years ago under the guidance of Bernard Horn and has been consistently applied by the same manager since inception. Today, our entire investment management team is dedicated to this philosophy, producing historically strong long-term risk-adjusted returns for investors.

any country, industry and market cap, with one rule: find undervalued companies with strong fundamentals

global investment strategy

  • ALL CAPITALIZATION GLOBAL INVESTMENT STRATEGY

    We employ an unconstrained pure value equity selection process that is characterized as an active, all-capitalization (multi-cap) global investment strategy. Portfolio construction attempts to balance the capitalization ranges subject to the firm’s value discipline.

  • GLOBAL INVESTMENT DIVERSIFICATION

    Global portfolios hold what we consider to be the most undervalued companies in the world, regardless of region or sector. We also have the flexibility to invest in emerging markets, providing an additional avenue for exposure to some of the world’s fastest growing economies. We conduct bottom-up stock selection, which results in portfolio weightings across industry, country and market capitalization that are a function of the companies we identified as the most undervalued in the world. We have focused on global diversification, ensuring that our portfolios have investments in at least 15 different countries and industry groups.

  • VALUE ORIENTATION

    The investment strategy strongly emphasizes valuation over growth. Committed to our global diversification mandate, the companies that typically enter the portfolios come from both developed and emerging markets, with two common elements: the companies generate strong sustainable free cash flows and have conservative balance sheets. These companies may be capable of growing stronger in difficult economic environments, while performing admirably in growth cycles too.

  • INVESTMENT VALUATION MODEL

    Each company’s valuation model is based on current cash flow from operations and a highly conservative 0% to 2% terminal real growth rate. However, many companies in the portfolios do grow faster than the assumed real growth rate, in which cases the market’s valuation of the firm can increase substantially as the market’s assessment of growth moves from pessimistic to optimistic. In short, the investment strategy is designed to invest in growth but not to pay for growth.

  • CONSERVATIVE ASSUMPTIONS

    The global investment strategy is highly likely to continue to be effective because the growth rates of cash flow needed to justify our investment is always far more conservative than those forecasted by the Street. The global equity portfolios and international equity portfolios deliberately positioned for positive surprises.

from the team at Polaris Capital...

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IMPORTANT INFO: RETIREMENT CALCULATOR

The retirement calculator is a model or tool intended for informational and educational purposes only, and does not constitute professional, financial or investment advice. This model may be helpful in formulating your future plans, but does not constitute a complete financial plan. We strongly recommend that you seek the advice of a financial services professional who has a fiduciary relationship with you before making any type of investment or significant financial decision. We, at Polaris Capital, do not serve in this role for you. We also encourage you to review your investment strategy periodically as your financial circumstances change.

This model is provided as a rough approximation of future financial performance that you may encounter in reaching your retirement goals. The results presented by this model are hypothetical and may not reflect the actual growth of your own investments. Polaris strives to keep its information and tools accurate and up-to-date.

The information presented is based on objective analysis, but may not be the same that you find at a particular financial institution, service provider or specific product’s site. Polaris Capital and its employees are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by this tool. Polaris is not responsible for any human or mechanical errors or omissions. All content, calculations, estimates, and forecasts are presented without express or implied warranties, including, but not limited to, any implied warranties of merchantability and fitness for a particular purpose or otherwise.

Please confirm your agreement/understanding of this disclaimer.

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from the team at Polaris Capital...

DISCLAIMER: You are about to leave the Polaris Capital Management, LLC website and will be taken to the PCM Global Funds ICAV website. By accepting, you are consenting to being directed to the PCM Global Funds ICAV website for non-U.S. investors only.

I AGREE - TAKE ME TO THE UCITS SITE

I DISAGREE - RETURN TO POLARIS SITE

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