Methodology
Performance Driven...Proven Results
The professional, experienced equity management team at Legacy Asset Management adheres to one simple goal: to generate superior long-term returns with lower risk than the overall market. While many investment firms strive for similar results, Legacy's independently audited track record speaks for itself.
Our Clients
At Legacy Asset Management, we work primarily with business owners, key corporate executives, and other high net worth investors. Many of these individuals have worked a lifetime to achieve high degrees of success and continue to provide well for themselves and their families. They turn to us to preserve such wealth for their retirement years as well as for the financial support of future generations. We also work with managers of foundations, endowments, and other institutions whose value-oriented investment philosophies closely match with ours.
Investment Philosophy
While markets may be inefficient in the short-term, over time stocks gravitate to their true intrinsic value which can be defined as the actual worth based on future cash flow expectations and other fundamental measurements. At Legacy, we attempt to take advantage of these short-term price disparities, while determining the true value of each potential holding for the long-term. We manage risk by constantly reassessing the assumptions within our valuation models and evaluating implications of unexpected global economic and market developments.
Investment Process
- We are stock pickers in the truest sense and adhere to a disciplined "bottom-up" fundamental approach in analyzing companies for inclusion within our portfolios.
- We start with a database of 1,000-ish stocks with capitalizations in excess of $1 billion and apply multiple screens to each: price/earnings, price/book, dividend yield, implied growth rate of the market, etc.
- We compliment our fundamental research with management interviews, Wall Street analysis, and other independent reports to identify those companies that trade below perceived intrinsic value and consider them as potential buys.
- Likewise, we monitor the corporate fundamentals of each holding on an ongoing basis and look for deteriorations in the economic or business climate. Sell decisions may be made once companies achieve or move beyond full valuation and also could be triggered by negative corporate actions that we believe may detract from future price appreciation.
Within our value-approach to investing...We strive to be trusted advisers and stewards of our clients' assets.
