Investment Perspectives

Gain access to the professional opinions and market analysis of our top investment experts, most notably our portfolio managers, through these timely insights. Each Investment Perspective focuses on the challenges and opportunities in a particular asset class and explains the thinking of the investment professionals who influence our fund strategies and manage our funds.

 

 

Domestic Equity—Value  |  January 2015
  • Companies that return cash to shareholders seem poised for strong performance
By James M. Tringas, CFA, CPA; Bryant VanCronkhite, CFA, CPA—Portfolio Managers, Special Mid Cap Value Fund

Stocks have rallied in recent years partly because companies returned cash to shareholders via increased dividends and share buybacks. In the current slow-growth environment, we believe companies that can grow their cash flows organically or have the ability to add debt to underleveraged balance sheets will continue to boost share buybacks, increase dividends, or participate in merger and acquisition activity. Because our process leads us to emphasize cash flow-rich companies with strong balance sheets, we believe the fund is well positioned to benefit from such shareholder-friendly corporate actions.

 

 

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