Vestor Capital Core U.S. Equity Strategy
Vestor Capital's U.S. Equity Strategy seeks investment in businesses offering fundamental value. To better focus our research, we identify those companies that we consider to be of the highest quality, with comprehensible and consistent business models, typically including companies with above-average returns on capital and equity. We appraise companies as a potential owner-operator focusing on those with business models and leadership teams with proven past performance and who have also demonstrated a penchant for growth. We seek out companies whose share prices are inexpensive relative to their history and interest rates - not just the market.
In order to maximize the potential benefit of our stock selection skills, we create equity portfolios that are concentrated and hold our 40 to 50 best choices, diversified by sector and industry. With our long-term perspective, the annual portfolio turnover tends to be low, historically averaging about 28% annually since 1994. This aids in lowering transaction costs and increases the potential long-term, after tax returns. The objective of this strategy is to provide diversification and participation in mid-to-large size companies operating in the U.S. Strategy performance is benchmarked against the Standard & Poor's 500 Composite Index. This strategy has earned Vestor Capital the distinctive award by PSN as Manager of the Decade.