Seafarer employs three distinct research capabilities to select securities for clients’ portfolios according to their investment objectives.
|Research Capability||Characteristics of Holdings|
|Balanced||Moderately underappreciated growth||Typically moderately elevated current yield|
|Growth||Higher growth potential||Typically lower current yield; sometimes no yield (dividend policy not yet established)|
|Value||Lower growth potential||Typically higher current yield; sometimes no yield (dividends canceled under financial stress)|
For each research capability, a Lead Portfolio Manager directs the research queue and bears responsibility for security selection and portfolio construction decisions.
Before any security is admitted to a client portfolio, the entire investment team undertakes a critical review of the prospective holding in a group presentation and discussion.