The flexibility to seek value broadly

Thornburg U.S. Equity Strategy is a focused portfolio of mostly U.S. companies, selected via a fundamentally driven, valuation-sensitive process. The strategy is centered on providing attractive, risk-adjusted returns with mitigated volatility versus the benchmark S&P 500 Index.

Working Photo“We are fundamental, bottom-up stock pickers. We have the flexibility to seek value broadly, employing our basket structure to ensure diversification. We want each holding to matter to performance; we therefore keep the portfolio focused amongst just 35–65 positions. Since 1995, we have worked to invest in promising companies selling at a discount to their intrinsic values. We believe this approach to be a durable and common-sense investment strategy. Importantly, it has worked over the long term for our investors.”

— Connor Browne

A Flexible Approach

Like other Thornburg portfolios, U.S. Equity Strategy is flexible in its approach. We have the ability to invest anywhere along the capitalization spectrum, within or outside the U.S. Our flexibility allows us to go wherever we see value.

Seeking Promising Companies at a Discount

Thornburg U.S. Equity Strategy has never been a deep-value portfolio seeking only beaten-up, tired businesses trading at low multiples. Rather, we believe that future price appreciation can belong to businesses with a bright future, businesses with promise.

We employ more flexibility than other value strategies in that the companies we consider tend to have attractive growth prospects. We don’t limit ourselves to a traditional, one-dimensional view of value.

Diversification via a Three-Basket Approach

We focus on constructing a core portfolio with potential to outperform its benchmark over time. We diversify the portfolio via several means, one of which is Thornburg’s three-basket diversification construct:

Basic value companies are, in our opinion, financially sound, well-established businesses selling at low valuations relative to net assets or earnings power.

Consistent earners normally exhibit steady earnings growth, cash-flow characteristics, and/or dividend growth. These companies may have above-average profitability measures, and may sell at above-average valuations.

Emerging franchises are often in the process of establishing a leading position in a product, service, or market, or have the potential to grow at an above-average rate.

A Regular, Repeatable Process

We have selected stocks via a bottom-up, collaborative, repeatable process since the strategy’s inception over 20 years ago.
Important Information

Investments in the Strategy carry risks, including possible loss of principal. Special risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in small capitalization companies may increase the risk of greater price fluctuations. Carefully consider the Strategy’s investment objectives, risks, fees and expenses before investing. There is no guarantee that the Strategy will meet its investment objectives.

The information provided herein should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account's portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed may not represent an account's entire portfolio and in the aggregate may represent only a small percentage of an account's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

Weight percentages are of the total portfolio unless otherwise noted.

Portfolio characteristics are derived using currently available data from independent research resources that are believed to be accurate. Portfolio attributes can and do vary.

Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses.

Portfolios invested in a limited number of holdings may expose an investor to greater volatility.

Portfolio construction will have significant differences from that of a benchmark index in terms of security holdings, industry weightings, asset allocations and number of positions held, all of which may contribute to performance, characteristics and volatility differences. Investors may not make direct investments into any index. Investors may not make direct investments into any index.

Valuations are computed and reported in U.S. dollars.

Source: Advent/APX, FactSet, APL, Vestmark, and Thornburg.

View the U.S. Equity Composite GIPS compliant presentation.

To receive a complete list and description of Thornburg Investment Management's composites, please contact the Business Development Group at bdg@thornburg.com

Please see our glossary for a definition of terms.