Value Equity Strategy
To remain consistent in our investment style and protect capital by using the time-tested contrarian value approach. The performance target for the Value Equity portfolio is to exceed the Russell 3000® Value Index over a full market cycle.
The Value Equity strategy is based on a disciplined, low P/E approach to stock selection. We invest in companies with capitalizations typically above $1 billion that our research concludes to be undervalued and that have strong fundamentals and historic earnings.
Led by Nelson Woodard, PhD, Portfolio Manager, the Value Equity team focuses on eliminating stocks with above-market valuations by comparing financial ratios such as the price-to-earnings, price-to-book and price-to-cash flow.
Through extensive bottom-up research and rigorous fundamental analysis, the team forms a portfolio that is well-diversified across 45-55 companies with the goal of achieving superior long-term performance results while managing volatility and risk.
Nelson Woodard, PhD (Managing Director and Lead Portfolio Manager), David Dreman (Founder, Chairman & Chief Investment Officer).
Inception Date: 11/2007
Value Equity Separate Account Performance
Benchmark:Russell 3000® Value Index
|Asset-Weighted Returns as of 3/31/2015|
|Last 3 Months||YTD||1 Year||3 Years||5 Years||7 Years||Inception
|Gross Total Return||2.43%||2.43%||6.13%||15.39%||14.15%||8.81%||7.55%|
|Total Return Net of Fees||1.68%||1.68%||3.04%||12.05%||10.85%||5.65%||4.43%|
|Index Total Return||-0.51%||-0.51%||8.94%||16.30%||13.66%||7.83%||6.02%|
Definition of the Firm
Dreman Asset Management ("DAM") is a division of Dreman Value Management, L.L.C. ("Dreman"), an independent investment management firm and registered advisor established on July 1, 1997. DAM participates in a number of wrap-fee SMA/UMA sponsor programs with several financial institutions. These institutions provide separately managed account services to their clients.
This Composite includes all of the Dreman's accounts or portfolios that are managed by the firm on a fully discretionary basis in an all cap value trading style including accounts contained in the firm's institutional, GIPS verified value equity composite. The composite data represents the historical performance of all value equity accounts managed by Dreman for the periods indicated, that have substantially similar investment objectives, policies, strategies and risks.
Dreman maintains a complete list of products and descriptions for strategies which is available upon request.
Valuations are computed and performance is reported in U.S. Dollars.
The benchmark for our Value Equity composite is the Russell 3000® Value Index. The Russell 3000 Value Index measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 3000® Value Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad value market. The Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. The market index used herein has been included for purposes of comparison of an investment in the relevant strategy to an investment in a certain well-known, broad-based equity benchmark. The statistical data regarding such indices have been obtained from Factset and returns are calculated assuming all dividends and income are reinvested. The volatility of this index may be materially different from that of funds and accounts of DAM. This index is unmanaged, with no fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.
The Value Equity Wrap fee performance reported is based on Value Equity accounts managed by the firm. Gross-of-fees performance returns are presented before all management and custodial fees but after all trading expenses. Returns are presented net of non-reclaimable withholding taxes. Returns are presented gross and net of management fees and include the reinvestment of all dividends and income. Net-of-fees performance returns are calculated by deducting the highest wrap sponsor’s bundled fee of 0.75% per quarter, from the quarterly gross representative account return. Actual investment advisory fees incurred by clients may vary.
Minimum Account Size
The minimum account size for our Wrap-fee SMA/UMA sponsors is $100,000 USD/$30,000 USD. The Firm has full discretion over all of the client accounts that participate in the wrap programs that the firm is engaged to provide investment advisory services to.
Past performance does not guarantee future results, and periodically, current performance may be lower or higher than the performance data quoted. There is no assurance that any securities discussed herein remain in any fund or account of DAM at the time that you receive this or that securities sold have not been repurchased. All investments involve risk including the potential loss of all principal invested. The investment return and principal value of an account will fluctuate so that a client’s account may be worth more or less than its original value. Actual account performance may differ due to; among other things, the timing of investments and withdrawals, individual account restrictions and limitations and differing tax treatment. To obtain the most recent month-end performance, please contact us at email@example.com or 1.877.830.6004. This material has been prepared for investors and investment professionals, including broker-dealers and investment advisers.