Select Equity Strategy

A Differentiated Approach to Concentrated Investing

We believe excess returns are best achieved by investing in high quality companies selling at attractive prices. We focus on companies that have strong management, broad resources and a competitive market position and have historically generated, or are positioned to generate, strong returns on invested capital (ROIC). The strategy seeks long-term capital appreciation through a concentrated portfolio, reflecting the top 20 names of the SBH All Cap strategy.

Investment Philosophy

We believe we can achieve higher potential outcomes through a focused approach, which allows for concentrating in our highest conviction ideas.

Strategy Description

The team seeks high ROIC companies trading at a 20% discount to our proprietary intrinsic valuation and employs proprietary screens to limit the universe to companies with low embedded expectations. The team integrates Environmental Social and Governance (ESG) factors as a key component in the research process, including analysis of ESG exposure materiality and comparisons against industry peers.

Our Approach

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Investment Process: Overview

Risk Management is Key Throughout the Entire Process

Idea Generation
Experienced analyst team seeks companies with high quality business models. Sourcing our highest conviction ideas from the SBH All Cap strategy produces a favorable return vs. risk profile.

Fundamental Research
Team pursues quantitative and qualitative analysis in order to form a deep understanding of each potential investment’s financial metrics, product offering, corporate culture, and industry structure.

Buy Discussion
A collaborative process led by portfolio managers, factoring in proprietary valuation models when making buy decisions.

 

Pension Bridge award promo

The Select Equity Strategy was recognized for performance and excellence by Pension Bridge using a quantitative and qualitative judging methodology.

 

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Select Equity 6 Stars All Cap Universe

 

Select Equity at SBH

20 Number of stocks

25+ Average number of years of portfolio manager experience at SBH

$5.8M Strategy AUM/AUA*

 

Portfolio Manager

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Suresh Rajagopal, CFA

Director of All Cap Strategies, Director of ESG Research
MBA, University of Notre Dame
B.A., Alma College

 

To learn more, reach us at contactus@sbhic.com

 

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CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

*As of September 30, 2021. Model UMA assets of $0M are included in the AUA portion of the AUM/AUA total. All opinions expressed in this presentation are solely the opinions of Segall Bryant & Hamill. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of the manager’s opinions. The opinions expressed are based upon information the manager considers reliable, but completeness or accuracy is not warranted, and it should not be relied upon as such. Market conditions are subject to change at any time, and no forecast can be guaranteed. Any and all information perceived from this presentation does not constitute financial, legal, tax or other professional advice and is not intended as a substitute for consultation with a qualified professional. The manager’s statements and opinions are subject to change without notice, and Segall Bryant & Hamill is not under any obligation to update or correct any information provided in this presentation.

PSN Top Guns 6 Star Category. As of 12/31/2020.

6 STAR CATEGORY: The peer groups were created using the information collected through the PSN investment manager questionnaire and uses only gross of fee returns. PSN Top Guns investment managers must claim that they are GIPs compliant. Products must have an r-squared of 0.80 or greater relative to the style benchmark for the recent five year period. Moreover, products must have returns greater than the style benchmark for the three latest three-year rolling periods. Products are then selected which have a standard deviation for the five year period equal or less than the median standard deviation for the peer group. The top ten information ratios for the latest five-year period then become the TOP GUNS.