Southeastern Asset Management has successfully generated strong performance by consistently employing our time-tested, global value investment process that relies on in-depth, fundamental company research and rigorous security selection. We apply this same investment discipline across all Funds. We believe the key to our decades-long success has been high-conviction investing with a long-term time horizon in strong businesses with good people at deeply discounted prices.
Our Proven Approach
Our Proven Approach
Strong Businesses, Good People, Deeply Discounted Prices
We invest in strong businesses that are understandable, financially sound, competitively positioned, and have ample free cash flow that may grow over time. These businesses are run by good people - honorable and trustworthy, highly skilled operators and capital allocators, who are focused on building value per share and have incentives aligned with their shareholders. We want deeply discounted investments selling for 60% or less of our appraisal value based upon the present value of free cash flow, net asset value, and comparable business sales.
We seek to take advantage of short-term market emotions. We are long-term owners, not traders or speculators, and invest for the long-term based on objective intrinsic values with a horizon of at least five years.
High Conviction, High Concentration Investing
We construct our portfolios with what we believe to be our best 18-22 global investment ideas. Concentrating allows for adequate diversification while providing some of the best opportunities to maximize returns, and minimize loss of principal.
Southeastern’s global investment team is known for its investment acumen and collaboration across geographies to identify some of the most qualified investments. Our team of generalists identifies what we believe to be undervalued companies and rigorously analyzes using our deep-dive vetting process and active questioning of assumptions. We strive to capitalize on our expansive network of global management and board contacts to further assess businesses and their leaders.
Partnership and Engagement With Company Management
Our investment team views our portfolio company management teams and boards of directors as partners, and we engage with them to ensure the greatest value for shareholders over the long term.
Alignment With Investors
Alignment of interests with our investors through employee investment in the funds advised by Southeastern, firm independence, and selection of stocks with vested management.