We adhere to a time-tested investment discipline to actively grow and protect our clients’ assets.

US Large Cap Equity Strategy™ (LCES)

Our Philosophy

For 50 years, Stralem has implemented a unique investment philosophy based on the understanding that when it comes to building sustainable wealth, the impact of preserving capital in falling markets far outstrips the importance of outperforming in rising ones. Strong participation in up markets combined with consistent protection in down markets leads to long-term market outperformance because it enables compounding to begin from a higher base when growth resumes. History has shown that participation with protection is among the most effective ways to build long-term wealth.

Our Strategy

Stralem’s investment strategy, the US Large Cap Equity Strategy™ (LCES), applies a time-tested, disciplined approach to creating wealth by managing growth and preservation of capital. Our distinct portfolio structure incorporates up-market stocks that drive capital growth and down-market stocks that protect capital. Capital preservation is built in through a consistent down-market allocation. This strategy has a long-term track record of outperforming the S&P 500 gross of fees.

Our Approach

We buy competitively advantaged companies that deliver growth alongside cash-rich companies that protect capital and reduce volatility. Stock selection is fundamental, research-driven, long-term focused and based on the belief that earnings growth ultimately drives long-term stock performance.

Our Process

We use a multi-layered, proprietary risk management model for portfolio structure, stock valuation and buy/sell discipline. Investment decisions are centrally made by Investment Committee consensus and implemented across all accounts so every client receives the firm’s best thinking. Our principals invest alongside our clients, aligning our interests with theirs.

US Large Cap Equity Strategy Performance Disclosure

Large Cap Equity Strategy GIPS Disclosure

Portfolio Characteristics

  • Concentrated portfolio of 28-35 U.S. large cap stocks
  • Long-term track record of outperforming S&P 500 gross of fees with consistently lower risk profile
  • Strong long-term upside/downside capture ratio
  • High active share with low turnover
  • Low volatility, not solely beta driven
  • Unique structure with stock selection that is fundamentally driven and quantitatively enhanced
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