WS Global Core Select, our global equity strategy, employs a long-term business-ownership approach within a discount to intrinsic value framework. We search for established, cash-generative, well-managed businesses that are leading providers of essential products and services, and we seek to purchase publicly traded equity securities of such businesses at a discount to their intrinsic values*. Estimates of intrinsic value are based on proprietary analysis of prospective free cash flows and returns on capital. We apply a disciplined investment-selection process focused on business, management, and financial attributes.
WS Global Core Select will generally hold investments in 30 to 40 U.S. and non-U.S. companies with market capitalizations greater than $3 billion; we seek to own a minimum of 40% non-U.S. companies in the portfolio. The targeted holding period is three to five years, and investments are typically sold if they appreciate above our estimates of intrinsic value.
We believe companies that possess the following business, management, and financial attributes are well positioned to create value for shareholders through varying economic and market environments.
- Essential products and services
- Loyal customers
- Leadership in an attractive industry or market niche
- Sustainable competitive advantages
- Strong operators with integrity
- Favorable capital allocations
- Meaningful share ownership
- Strong balance sheet and free cash flow
- High returns on capital
*WS’s estimate of the present value of the cash that a business can generate and distribute to shareholders over its remaining life.
-The strategy may assume large positions in a small number of issuers, which can increase the potential for greater price fluctuation.
-International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards.