Channing Capital Management

Philosophy

Inspired by pioneers of value investing — Benjamin Graham, and more recently, Warren Buffett — we believe that building portfolios of small- to medium-sized, undervalued companies will generate competitive, long-term results and high alpha for our clients. Employing a concentrated, contrarian approach, we are committed to investing in 40 to 50 companies in which we believe there is long-lasting unrecognized value.

We are high conviction managers, and we call our investments Best Ideas: high quality franchises with strong balance sheets and management teams, which we uncover through intensive, fundamental, bottom-up research.

Stock prices generally reflect true business values over time. We have found that in the short- and medium-term, market prices are often either far above or below true value, particularly when a company or industry is out-of-favor. Through value investing, we seek to exploit these disparities. We look for companies trading at significant discounts to their intrinsic values, a process that provides a margin of safety for every investment.

Our approach tends to enjoy its best performance during the mid- and late-cycles of economic growth marked by a normalized environment and high quality investments recapturing their competitive positions. Markets are inherently cyclical, and we are committed to ensuring that our clients’ portfolios are especially rewarded when value investing is in favor, while consistently managing portfolio risk.

Each client portfolio is concentrated, risk-managed, and positioned to deliver strong performance over the long term.