Cramer Rosenthal McGlynn

Cramer Rosenthal McGlynn Global Opportunity Strategy

Investment Objective

The Global Opportunity Strategy seeks to outperform the benchmark by 200-300 basis points net of fees over a full market cycle.

Primary Investments

Investing in undervalued leading global companies with market capitalisations greater than US$1 billion.

Style

Cramer Rosenthal McGlynn's (CRM) style is core with a value bias. This is identified as relative value which allows for thoughtful, opportunistic investing within the framework of their valuation disciplines.

Investment Philosophy

Every company bought and sold is characterised by three attributes: change, neglect and valuation.

Change

The global financial markets are rich with change. Every day the markets present investors with mergers, divestitures, restructurings, new management teams or new products and expanded markets.

Neglect

Especially in its early stages, change tends to be greeted with uncertainty, expressed as investor neglect - manifested through negative sentiment, negative to neutral stock ratings and buyer aversion.

Valuation

When change meets neglect, the intrinsic value of a company may exceed the current stock price. At the intersection of change and neglect with attractive valuation, CRM finds the potential for a substantial outperformance with lower downside risk.

Process

The team initially identifies companies that have a solid track record of delivering share holder value and return on capital. The element of change is additionally sought after, as change can be material to the operations of a publicly traded company. Once a quality company is identified, the business is appraised by producing a financial model based principally upon projected cash flow. The business is then evaluated in context of what the market is willing to pay for comparable companies, and what a strategic buyer would pay for the entire company.

CRM speak with management teams and cross reference management claims about future profitability through an extensive worldwide network of research contacts built over decades. Intensive due diligence enables nimbleness in situations where they have identified attractive valuations. Every CRM portfolio reflects a series of separate, well- reasoned decisions to invest in individual companies documented in their Investment Case.

Portfolio Fit

Would complement a global equity portfolio as a core strategy, providing value characteristics with lower volatility than a traditional value strategy.

Currency

Unhedged

Management Fees

Available upon request

Vehicle

Mandate

Investment Manager

Cramer Rosenthal McGlynn L.L.C. (CRM) was founded in 1973 as a value investment specialist who invests in changing companies neglected by other investors.