Finding value in the global marketplace
The Altrinsic investment philosophy is embodied in its name, derived from the Latin word altus and intrinsic. “Altus” represents the firm’s pursuit of peak performance, while “intrinsic” refers to Altrinsic’s focus on the drivers of companies’ intrinsic value and financial productivity.
Searching for opportunities amid change and uncertainty, Altrinsic's investment team seeks to capitalize on inefficiencies in the world’s equity markets by taking a long-term view and leveraging in-depth fundamental analysis, global industry knowledge, and its distinctive cross-border frame of reference. As the value of information has become increasingly commoditized, the value of experience, perspective, judgement, and common sense have increased.
Altrinsic’s determination of intrinsic value is not confined to a narrow definition of “value” (i.e., low P/E) stocks. Seeking opportunities amidst change and uncertainty, there is prudent flexibility in the process that allows the team to capitalize on two broad types of investments. The first are undervalued, higher-quality companies with strong sustainable return on capital profiles, and the second category of companies are undervalued businesses in which profitability levels are depressed and/or are likely to improve. Altrinsic’s time-tested fundamental discipline, combined with prudent risk management, seeks to deliver superior risk-adjusted returns over the long term.
Investment selection process
When selecting companies for a portfolio on the basis of valuation and risk-adjusted return profiles, Altrinsic starts with a universe of more than 1,500 companies. Quantitative screens and on-the-ground fieldwork reduces the number of companies to around 200. From there, fundamental analysis results in a portfolio of 60-100 names.