Investment Approach
Refined Over Decades to be Engineered for Success™
We invest in public equity securities with the goal of maximizing long-term returns for our clients and ourselves.
Our repeatable process focuses on the most important drivers of return: current price and future earnings.
Process –
Value + Quality + Analyzability = The Lyrical Way
Value
Lyrical’s process begins with the largest companies in the market. We sift through these securities, applying fundamental research to identify the most attractive values in the market. We believe the price we pay is the most important driver of our ultimate return.
Quality
To help avoid value traps, we avoid investing in the lowest quality companies. If you look hard enough, you can find quality companies, we call gems, priced as cheap as the junk. Quality improves our odds of success, as resilient businesses are more able to withstand the world’s inevitable unexpected ups and downs.
Analyzability
Price matters most, but if future earnings do not materialize, all is for naught. Investing success depends on reasonably estimating the future earnings of a business. For some companies this is much easier than for others. We seek companies that are relatively simple to understand, which we believe should improve our ability to estimate future earnings.
Performance Matters –
Investors rightly care about capable stewardship of capital. Lyrical Asset Management provides its investors a disciplined, enduring approach.
RESPECT TO ESG
We engage with portfolio companies to promote positive ESG behavior. See more about Sustainability.
Since Inception in 2020,
LAM has compounded capital at 26.9% gross per annum (25.9% net) in its longest standing, still available Global Impact Value Equities Strategy (GIVES) Portfolio. During this same timeframe, the MSCI World has compounded capital at 22.9% per annum.
RESPECT TO ESG
We engage with portfolio companies to promote positive ESG behavior.
Since inception in 2021,
LAM has produced a total return of 9.8% in its longest standing, still available ETF Portfolio, USVT. During this same timeframe, the S&P 500 has produced a total return of 2.2%.
Since Inception in 2009,
Lyrical Asset Management (LAM) has compounded capital at 18.2% gross per annum (16.3% net) in its longest standing, still available U.S. Equities Portfolio, “EQ”. During this same timeframe, the S&P500 has compounded capital at 15.2% per annum.
Since inception in 2019,
LAM has compounded capital at 12.3% gross per annum (11.5% net) in its longest standing, still available International Equities Portfolio. During this same timeframe, the MSCI EAFE has compounded capital at 9.1% per annum.
Since Inception in 2020,
LAM has compounded capital at 13.7% gross per annum (12.9% net) in its longest standing, still available Global Equities Portfolio. During this same timeframe, the MSCI World has compounded capital at 14.8% per annum.
Taxes Matter for the Taxable
Our average portfolio turnover has been ~15% per annum, providing tax-efficiencies for taxable investors.
