U.S. Value Equity Strategy

The Lyrical Asset Management U.S. Value Equity strategy is a concentrated portfolio selected from the universe of the largest 1,000 stocks in the United States.

Overview

Strategy Description & Investment Objective

Like Lyrical’s other strategies, U.S. Value Equity is grounded in process. The portfolio normally includes 33 best ideas, diversified by sector and industry. The strategy is designed with a goal to diversify by industry with enough concentration to drive differentiated performance. Active Share is typically very high at 95% or higher. Tax efficiency has also been high, with average turnover of ~15% per annum.

Portfolio Managers

Wellington min e1706889464144

Andrew Wellington

Founder, Chief Investment Officer

Kaskawits min e1706889282895

Dan Kaskawits, CFA

Portfolio Manager

Mullins min e1706889389229

John Mullins

Portfolio Manager

Product Description

  • ~33 U.S. listed stocks
  • Selected from largest 1,000 U.S. stocks
  • Pure bottom-up

Stock Selection

  • Value
  • Quality
  • Analyzability

Strategy Accessibility

  • Limited Partnership (Flagship EQ Strategy)
  • Separately Managed Account (SMA)
  • Mutual Fund
  • UCITS
  • UMA

Strategy Details

As of 12/31/2023

Strategy Information

Strategy Accessibility

As of 03/31/2023

Performance

U.S. Value Equity Composite – EQ Inception: 01/01/2009

U.S. Value Equity Composite – CS Inception: 08/01/2013

As of 04/30/2023

As of 03/31/2023

As of 12/31/2022

These results are unaudited and subject to revision, are for a composite of all accounts, and show all periods beginning with the first full month in which the advisor managed its first account in this strategy. Net returns include a 1.25% per annum base fee from inception through March 2020 and a 0.85% per annum base fee from April 2020 onward. An individual client’s performance will vary depending on their specific fee schedule. The net returns also include the deduction of relevant expenses, including trading costs, but do not reflect the deduction of custodial fees.

In the interest of our clients, reporting as to positions in transition are lagged at our discretion. Generally, securities which have not been purchased for all accounts are not reflected as held and sales of positions which remain in any client accounts similarly are not reflected. Specific investments described herein do not represent all investment decisions made by Lyrical Asset Management LP (“LAM”). The reader should not assume that investment decisions identified and discussed were or will be profitable. Specific investment advice references provided herein are for illustrative purposes only and are not necessarily representative of investments that will be made in the future.

The foregoing should not be deemed an offer or a solicitation of an offer to invest in any fund. Any such offering can only be made following a one-on-one presentation, and only to qualified investors in those jurisdictions where permitted by law. Past performance is not necessarily indicative of future results. Individual results may vary based on timing of contributions and/or other factors. The foregoing information has not been provided in a fiduciary capacity, and it is not intended to be, and should not be considered as, impartial investment advice.

The S&P 500® Value draws constituents from the S&P 500®. S&P measures value using three factors: the ratio of book value, earnings, and sales to price. S&P style indices divide the complete market capitalization of each parent index into growth and value segments. Effective 5/21/2020, the benchmark was changed retroactively to the S&P 500® Value Index. The agreement with the licensor of the prior index concluded on that date. Any indices shown are provided for illustrative purposes only, are unmanaged, reflect reinvestment of income and dividends and do not reflect the impact of advisory fees. Investors cannot invest directly in an index. Comparisons to indexes have limitations because indexes have volatility and other material characteristics that may differ from the composite.

Holdings

Top 10 Holdings

As of 12/31/2023

Portfolio holdings are subject to change and should not be considered investment advice.

Weightings

As of 12/31/2023

Note: No exposure to Consumer Staples, Materials, or Real Estate

Disclosures

LAM claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. LAM has been independently verified for the periods from January 1, 2009 through December 31, 2021. The verification reports are available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm‐wide basis. LAM is a U.S.-based registered investment adviser that provides financial services to individual and institutional investors. Registration with the SEC does not imply a certain level of skill or training.

To receive a GIPS® compliant presentation please visit the Lyrical Asset Management GIPS® Page.