Global Value Team
Investment Philosophy & Process Overview
Artisan's Global Value investment team pursues long-term capital growth by investing in undervalued businesses that offer the potential for superior risk/reward outcomes.
The team's in-depth research process focuses on four key investment characteristics:
Undervaluation
Determining the intrinsic value of the business is the heart of the team's research process. The team believes that intrinsic value represents the amount that a buyer would pay to own a company's future cash flows. The team seeks to invest at a significant discount to its estimate of the intrinsic value of a business. As long-term investors, it is the team's core belief that valuation is the most crucial determinant of stock market return over the long-term.
Business Quality
The team seeks to invest in companies with histories of generating strong free cash flow, improving returns on capital and strong competitive positions in their industries. This criteria helps rule out businesses that are statistically cheap, but whose values are deteriorating over time.
Financial Strength
The team believes that investing in companies with strong balance sheets helps to reduce the potential for capital risk and provides company management the ability to build value when attractive opportunities are available.
Shareholder-Oriented Management
The team's research process attempts to identify management teams with a history of building value for shareholders.
Important Investment Risk Disclosure
Important Investment Risk Disclosure
Global Value Strategy
International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets. Securities of medium-sized companies tend to be more volatile and less liquid than those of large companies, may have underperformed the securities of large companies during some periods and tend to have a shorter history of operations than large companies. Value securities may underperform other asset types during a given period.
Non-U.S. Value Strategy
International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets. Securities of medium-sized companies tend to be more volatile and less liquid than those of large companies, may have underperformed the securities of large companies during some periods and tend to have a shorter history of operations than large companies. Growth securities may underperform other asset types during a given period.