Our flagship U.S. large-cap equity strategy, WS Core Select, adopts a long-term business-ownership approach within a discount to intrinsic value framework. Our primary objective is to provide investors with long-term capital growth while minimizing the risk of permanent capital loss in each investment. Our investment process is driven by a thorough bottom-up, fundamental analysis of businesses.
We aim to invest in well-established, cash-generative businesses that are leaders in providing essential products and services, led by strong management teams. We purchase the publicly traded equity securities of such businesses at a discount to their intrinsic values*, determined through proprietary analysis of prospective free cash flows and returns on capital. Our disciplined investment-selection process focuses on evaluating business, management, and financial attributes.
WS Core Select typically holds investments in 25 to 35 North American companies with market capitalizations greater than $5 billion, and may also invest in certain firms headquartered outside North America in other developed regions. Our targeted holding period is three to five years, and we generally sell investments if they appreciate above our estimates of intrinsic value.
We believe companies with the following business, management, and financial attributes are well positioned to create value for shareholders through various economic and market environments.
- Essential products and services
- Loyal customer base
- Leadership in an attractive market niche or industry
- Sustainable competitive advantages
- Strong operators with integrity
- Favorable capital allocation
- Significant share ownership
- Strong balance sheet and free cash flow
- High returns on capital
WS Core Select may assume large positions in a small number of issuers, which can increase the potential for greater price fluctuation.
There is no assurance the objective will be achieved.
*WS’s estimate of the present value of the cash that a business can generate and distribute to shareholders over its remaining life