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
The next prong of our Gems Amid the Junk™ approach aims to avoid investing in the lowest quality “value trap” 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.
Analysis
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.
Taxes Matter for the Taxable
Our average portfolio turnover has been ~15% per annum, providing tax-efficiencies for taxable investors.
