Granite Investment Advisors, an independently owned investment management firm, has introduced the Granite Value Fund, an actively managed equity fund investing primarily in mid- to large-capitalisation equity securities of US and foreign companies.
The Granite Value Fund seeks to provide long-term capital appreciation by investing in equity securities of approximately 40 companies believed by the Adviser to be undervalued. The managers of the Fund are Scott Schermerhorn, a 25-year investment industry veteran and Chief Investment Officer of Granite Investment Advisors, and Tim Lesko, a principal of the firm and senior member of the investment team.
Granite Investment Advisors is a long-term, value oriented investment manager that applies a disciplined approach to equity selection. The firm uses fundamental analysis to identify companies with above average or improving profitability selling at below average valuations.
In selecting portfolio securities for the Fund, Granite will look for companies that have a unique competitive advantage; whose business models are simple and can be understood; have management teams the Adviser feels are trustworthy; have low debt and are not dependent upon borrowed money to conduct daily operations; and, have the ability to generate significant free cash flow over a market cycle.
"We are excited to bring our disciplined, institutional-grade investment strategy to investors of all sizes," says Scott Schermerhorn, Granite’s Chief Executive Officer and the Senior Portfolio Manager for the Fund. "Over the years we have had many prospective clients whose investment assets were not sizeable enough to be managed effectively in our separate account strategies. Now we are pleased to have a solution to help these investors take advantage of our time-tested investment process. The Granite Value Fund will be concentrated in those companies that we know extremely well and that exhibit high or improving returns on capital."
