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The Columbia Value and Income Team employs a disciplined, investment philosophy to seek the “undervalued and unloved.” We believe the most attractive opportunities are often those that are viewed so negatively that most investors do not even consider them.

Investment Approach

Through fundamental analysis, behavioral/sentiment insight and a keen focus, the strategies seek to exploit industry and stock level chronic inefficiencies in order to find well priced risk in the equity markets. The team integrates fundamental and behavioral views in an effort to identify opportunities that take a non-consensus stance, typically focusing on a three-year time horizon. Industries are actively over- or under-weighted according to the team’s economic outlook and market expectations. Thematic positioning is driven primarily from industry level insights. Portfolios are constructed to include 100–150 of the team’s highest conviction ideas given client guidelines.

Distinguishing Features

  • In-depth knowledge of undervalued, under-followed and out-of-favor stocks provides a perspective that better positions the team to identify and analyze potential catalysts
  • A disciplined investment philosophy that challenges consensus thinking to find sentiment extremes
  • Collaborative and interactive experienced team approach with a single focus
  • Focus on longer timeframes where competition’s lack of focus provides opportunities
  • All strategies employ the same investment style but have a different capitalization focus with flexibility to invest across the full market cap spectrum

Invesetment Process

Fundamental research
  • Fundamental analysis: Intensive research to understand and forecast essential story elements at the industry (portfolio manager) and stock (analyst) levels
  • Behavioral finance: Comparison of our proprietary fundamental view with consensus view to determine potential inefficiencies from behavioral bias
  • Timeframe: Focus on longer-term industry and company prospects
Valuation and risk management
  • Value screening: Each analyst uses proprietary screening models to identify ideas
  • Factor exposure: Quantitative assessment of systematic factor exposure
  • Risk budget: Quantitative measurement/forecast of tracking error attribution and cumulative effect
Creative collaboration
  • Interaction: Interactive team approach among portfolio managers and analysts
  • Distinct insight: Best ideas emerge from regular interaction
  • Clarity: Collaboration eliminates blind spots and increases conviction