Michael Gallant, Director of Research, Analyst, Schafer Cullen Capital Management, joins Julie Cooling, Founder & CEO, RIA Channel, to discuss Schafer Cullen’s time-tested approach to value investing.
Schafer Cullen is a boutique asset manager with over 40 years of experience in value investing. The active manager’s investment strategies ultimately center around the idea that consistent exposure to the market, coupled with a price disciplined approach will deliver long-term performance and capital appreciation.
The firm’s flagship US High Dividend Value Equity Strategy seeks companies with an attractive price/earnings ratio, dividend yield of at least 3%, and dividend growth. This strategy has an impressive 28 year track record and has remained consistent and successful since its inception.
“Value investing, when looked at over a long time frame, has outperformed not just growth investing, but the broad market over time,” says Gallant. Low P/E stocks have very meaningful outperformance over high P/E stocks. Value investing also provides impressive downside protection, even in cycles where growth outperforms.
Looking at past inflation and rising rate environments, value stocks have demonstrated significance outperformance. This positions value investing to outperform substantially in the current market landscape.
Schafer Cullen Capital Management is a financial consulting firm and independent research boutique. Since the firm’s founding in 1983, the firm’s capabilities have expanded to include diverse strategies that investors can access globally, directly or through global banks and local financial advisors. Schafer Cullen manages about $21 billion in assets under management and is 100% employee-owned and operated.