Strategy

Concentrated U.S. Value

Our concentrated value strategy seeks long-term capital appreciation. Initially offered in 1994, our concentrated value strategy takes larger portfolio positions in individual companies to accommodate investors who are comfortable with a higher potential level of single security driven volatility.  Our concentrated value strategy portfolios typically hold 20 – 30 positions. Appreciating positions will often grow to 7% – 15% of portfolio assets.

Our concentrated value strategy employs the same exacting research process as our diversified strategy. We focus on identifying businesses trading below their true worth, which we determine through both fundamental and qualitative research analysis. Our concentrated value strategy focuses predominantly U.S. equities with a bias toward small and mid-sized companies where our proprietary research can identify opportunities other investors have either ignored or failed to see. Each portfolio investment is individually researched and selected for its long-term upside potential. Our time horizon for investments is 3-years or greater, which reduces costs related to portfolio turnover, including capital gains for taxable investors.

U.S. Value Equity

PCM’s initial strategy offering dates back to the founding of our firm with Collier family assets in 1986. It remains our largest strategy offering today. Our diversified value seeks long-term capital appreciation. We apply a research process that focuses on the identification of businesses trading below their true worth, which we determine through both fundamental quantitative and qualitative analysis. Our diversified value portfolios allocate assets predominantly to U.S. equities with a bias toward small and mid-sized companies where our proprietary research can identify opportunities other investors have either ignored or failed to see. Like all PCM strategies, we do not seek to mimic the broad market. Each portfolio investment is individually researched and selected for its long-term upside potential. Our time horizon for investments is 3 years or greater, which reduces costs related to portfolio turnover, including capital gains for taxable investors.

Hedged U.S. Equity

Through its Harmonic Investors subsidiary PCM offers hedged equity strategies that seek to achieve three primary goals: (i) to generate attractive rates of risk-adjusted capital appreciation over full market cycles, (ii) to realize portfolio income through dividends and covered call option premiums, and (iii) to manage portfolio equity volatility through an active options strategy that continuously adjusts option positions to manage market exposure. Harmonic Investors hedged investment approach is designed for investors who desire more limited volatility in an equity investing context or for investors who seek additional diversification to long equity or fixed income portfolios.

All investing entails risk.  No assurances can be given that PCM will attain the investment objectives outlined above or that an investor will not lose invested capital.  Past performance is not a guarantee of future results.  Individual account performance may vary.  PCM’s Form ADV Part 2 contains a more detailed description of risks associated with PCM’s investment strategies and advisor fees charged to separate accounts.

The content on this site is provided as general information only and should not be construed as an offering of advisory services or a recommendation to buy or sell any security or financial instrument by PCM. Information provided is not intended for distribution to, or use by, any person or entity in any jurisdiction or country that would subject PCM to any registration requirement within such jurisdiction or country.