Large Cap Core Equity

The Core Equity product was the first product offered by The Swarthmore Group. It is designed to provide clients with a disciplined equity style and to serve as the cornerstone of a diversified investment strategy. The product has a low tracking error, meaning that it has a low level of deviation from the benchmark. The Core Equity product is crafted utilizing a bottom-up fundamental stock selection approach coupled with an evaluation of the economic environment. The Swarthmore Group believes that a company’s earnings growth prospects are the key component of its underlying value. The Core Equity portfolio, therefore, contains elements of growth and value with the overall objective of identifying good companies that are getting better.

The buy/sell process is a critical component in the portfolio management process of The Swarthmore Group. Buy criteria include an analysis of the sustainability of earnings growth, liquidity measures, market capitalization, and price/earnings growth ratios. Sell criteria aim at the preservation of capital through implementation of price targets and a continual review of the portfolio to ensure no deterioration in the fundamental profile of portfolio holdings.

Product Statistics

• Approximately $544.4 million in assets managed in core equity style
• 20 institutional clients
• Portfolio holdings average 30 to 40 stocks
• Top ten holdings represent 30% to 40% of the portfolio
• Benchmarked to the S&P 500 Index