Trojan Equity Fund

Investment Philosophy

The investment objective of the Trojan Equity Fund is long-term capital appreciation and income.  The Fund seeks to achieve its objective by identifying companies trading below their intrinsic value.  The team uses bottom-up fundamental analysis to identify undervalued securities, to create a concentrated low-turnover portfolio positioned to outperform its benchmark, the Russell 1000 Index on both an absolute and risk-adjusted basis.

The Fund’s portfolio management team will attempt to identify and invest in companies with the ability to generate free cash flow and use it judiciously. In addition, the companies should have strong balance sheets with favorable returns on capital. This might include identifying companies that trade at a discount to book value or net current assets. The goal of the selection criteria utilized will be to attempt to ensure an adequate margin of safety.

Security Selection Methodology

Investment Style:

  • Large-Cap
  • Value

Market Cap Universe:

  • >$4B

General Investment Mandate:

  • Long only
  • ADR ≤ 10%
  • No one security can account for >10% of the portfolio
  • Annual turnover ratio will be ≤ 50%, but, with the permission of the SIF instructor, can be >50%
  • Cash ≤ 10%
  • Sell if fraud is announced (or suspected)

Benchmark:

  • Russell 1000 Value