CM Large Cap Absolute Value

Strategy Facts

Inception Date September 2010
Minimum Investment $500,000
GIPS® Compliance Contact Us
Literature Contact Us
Portfolio Managers Arnold Van Den Berg
Scott Van Den Berg 

Our Commitment

It is one of our core beliefs that as the advisor, we invest our own money in the same investments as our private clients and mutual fund shareholders. Therefore, our officers, employees, and their families have a substantial amount, if not all, of their investments in one or more of the private account and mutual fund strategies that we manage.

Strategy Name

CM Large Cap Absolute Value

Strategy Type

Large Cap Absolute Return

Objective

Long-Term Growth of Capital

Investment Strategy

  • We focus on companies that we believe are selling at deep discounts to our appraisals of their intrinsic values and that have market capitalizations equal to or greater than $5 billion at the time of purchase.
  • The valuation methods we use to determine the intrinsic value of a company include one or more of the following: historical analysis, segment analysis, free cash flow analysis, acquisition analysis, leveraged buyout analysis, and discounted cash flow analysis.
  • Included in the valuation process are both quantitative and qualitative factors to help evaluate the key revenue drivers of the business, its risks/headwinds, its potential rewards, its unique characteristics, if any, and the industry dynamics in which the company participates.
  • Because of its strict buying discipline and investment parameters, this absolute-return strategy may carry larger cash equivalent positions than strategies whose target is to be fully-invested. There are no restrictions on the levels of cash equivalents that this strategy may hold, and there is no time period in which this strategy must be predominately invested in equities. Thus, accounts may carry greater than 50% cash equivalent positions for extended periods of time.
  • Alternative investments to common stocks or cash equivalents that may be used to achieve our objective include, but are not limited to, mutual funds, exchange-traded funds ("ETFs"), warrants, rights, and U.S. Treasury securities.
  • This strategy focuses on absolute return and therefore should not be compared to an index.


Century Management ("CM") is an independent registered investment adviser.

The CM Large Cap Absolute Value strategy was created on September 30, 2010. The focus of this strategy is to find undervalued equities that over time will produce above average returns with a lower degree of risk than that of the general market. Portfolios in this composite are comprised of equities with market capitalizations that at cost are $5 billion or greater. Because of our strict buying discipline and investment parameters, the CM Large Cap Absolute Value strategy lends itself to carrying larger cash positions than strategies whose target is to be fully-invested or seeking a relative return. Therefore, because of its focus on absolute return rather than relative return, we are not including any index for comparison purposes.

Because of its strict buying discipline and investment parameters, the CM Large Cap Absolute Value strategy lends itself to carrying larger cash positions than strategies whose target is to be fully-invested or seeking a relative return. Therefore, because of its focus on absolute return rather than relative return, we are not including any index for comparison purposes.

The management fee schedule for this strategy is an annualized rate of 1% on the equities only, billed quarterly. Actual investment advisory fees incurred by clients may vary.

CM claims compliance with the Global Investment Performance Standards ("GIPS®"), examined from the strategy's inception, September 30, 2010, through June 30, 2014.  This performance was prepared by CM and presented to and examined by Ashland Partners & Company, LLP. Ashland Partners continues to verify the compliance of CM with the requirements of GIPS® on a firm-wide basis each calendar quarter.

This GIPS® verification and performance examination is generally one to two quarters in arrears of the most recent performance information presented. Thus, while performance figures shown after the verification date are believed to be accurate, they are preliminary and have not yet been examined. To receive a complete list and description of the Firm’s strategies or a GIPS® compliant presentation, please contact us at 1-800-664-4888, or write to us at 805 Las Cimas Parkway, Suite 430, Austin, Texas 78746.