On August 20, 1987, founding partners of Boston Partners Asset Management outlined their thoughts about investing. Now known within Boston Partners as “The Fundamental Truths,” the key principles that guide our investment approach were laid out as follows:
For more than two decades*, the investment team at Boston Partners has utilized these fundamental truths to build portfolios that seek to produce attractive absolute returns that outpace market averages and rank at the top of industry peer groups.
| Total Strategy | Mutual Fund | Separate Account | Offshore (UCITS) | |
|---|---|---|---|---|
| Large Cap Value | $33,867 | $17,817 | $13,450 | $2,600 |
| All Cap Value | $12,393 | $1,979 | $4,454 | $5,960 |
| Mid Cap Value | $21,048 | $12,859 | $7,065 | $1,124 |
| Small/Small II/Smid | $4,716 | $561 | $4,155 | – |
* AUM ($ Millions) as of 6/30/2019
The source of our investment returns is security selection achieved through bottom-up fundamental research. Additionally, quantitative analysis is utilized to guide the fundamental work. When both are combined, they help uncover the three most important determinants of a successful equity investment:
We follow these “investment laws of physics” to build a diversified portfolio of stocks that, when properly constructed, has an increased probability of success. For us, successful investing is executed at the margins where seemingly small gains can lead to long-term success.
* Key investment professionals have worked together since the founding of Boston Partners in 1995 and years before at a prior firm, where the investment philosophy was established.
The Three Circles
We buy stocks that exhibit:
We sell stocks based on:
In our experience, portfolios with all three characteristics tend to outperform over time.
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