Overview
Research-driven Traditional Value Approach
The Jennison Large Cap Value Equity SMA strategy uses a bottom-up stock selection approach in seeking to outperform its large-cap value benchmarks at a comparable risk level. The team believes that in-depth fundamental research is critical to successful stock selection.
Looking for Troubled Stocks, Not Troubled Companies
The investment team believes that most large companies inherently produce normalized levels of returns and growth rates. Although those rates may deviate over the short term, the team believes they usually revert to normal levels over time. The managers assess companies with underperforming stocks to identify instances where the market is incorrectly interpreting subnormal returns and growth rates. They then try to identify changes in fundamentals (catalysts) that can lead to upward price movements. The resulting portfolio generally holds 50 to 60 stocks diversified across industries and sectors.
Portfolio Managers
Joseph Esposito
Managing Director and Large Cap Value Portfolio Manager
Warren Koontz, Jr., CFA
Managing Director, Head of Value Equity, and Large Cap Value Portfolio Manager
Characteristics are intended to provide a general illustration of the investment strategy and considerations used by Jennison in managing that strategy during normal market conditions and may change over time.
SMAs differ from pooled vehicles like mutual funds in that each portfolio is unique to a single account therefore the investment decisions may vary from those made for other accounts. SMAs do not issue registered prospectuses, the fees structures differ from those normally seen in mutual funds and generally carry higher account investment minimums. Please remember that there are inherent risks involved with investing in the markets, and investments may be worth more or less than initial investment upon redemption. There is no guarantee that the investment managers' objectives will be achieved. Professional money management is not suitable for all investors. Investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.
All investments contain risk, including possible loss of principal. Invests in large-capitalization companies that may underperform small- and medium-capitalization companies when stocks of large-capitalization companies are out of favor. The determination by a speculator that a stock is undervalued may not be borne out by subsequent market movements, and the stock price may not rise to what the speculator believes is its full value. The stock price may even decrease in value.
Separately Managed Accounts are offered through our affiliates. Jennison Associates is a registered investment advisor under the U.S. Investment Advisers Act of 1940, as amended and a Prudential Financial company. Registration as a registered investment advisor does not imply a certain level of skill or training.
Investment Products: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.
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