The Wall Street Transcript recently featured The London Company’s Managing Director and CIO Steve Goddard in the April Investigating Strategies Report.
Mr. Goddard discusses the Mid Cap strategy and investing in companies with high returns on capital and attractive valuations.
“We focus on downside risk” said Mr. Goddard. “And try to look for companies that have predictable cash flows, recurring revenues and under-levered balance sheets. We don’t rely so much on growth or speculation.”
Founded in 1994, the London Company has grown to encompass over $20 billion in assets¹ under advisement, including non-discretionary model assets, with the following client types: endowments, corporate and public pensions, and high net worth families/individuals. The company’s Mid Cap strategy has been operated since 2011 under the same strategy discipline as their Small Cap; Small- Mid; Large Cap; and Income Equity portfolios.
“We seek factors that can create value under management’s control, particularly on the balance sheet. If they can modestly lever their balance sheet, buy back equity or pay out more in dividends, then they could be a candidate for us.”
1 Includes discretionary and model program assets (UMA) as of 09/31/2016.