Robin H. Prince

JPAM's core equity investment approach embraces value and growth qualities and incorporates fundamental analysis with experienced judgment. Using comprehensive databases and a proprietary screening standard, JPAM first reduces their universe of issues by eliminating smaller companies with market-cap below $1 billion. Stocks then are screened to eliminate securities with market valuations that they deem too high or too risky or, for that matter, too low and too mundane. Their valuation standards encompass the central two-thirds of the S&P 500 valuation range. The firm next identifies companies that demonstrate a critical combination: both rising earnings estimates and successful earnings reports relative to consensus projections. Fundamental analysis on the statistically selected pool of candidates begins with management's commentary and is supplemented with competitors' information and Wall Street analysis. JPAM's analysis confirms current trends and establishes confidence over the intermediate future. The research effort is prioritized by portfolio needs. The firm employs two lists of equity securities to build client portfolios; each list is constructed from the same group of statistically attractive candidates and is selected based on confirming fundamental research. Client portfolios are individually tailored and are constructed using both the Core and Dynamic lists. Factors such as tax sensitivity, risk tolerance and special requirements are considered in the final selection. The Core List of stocks comprises large-cap issues with pervasive quality characteristics--companies that are outstanding in terms of product, financial strength, management and international diversification. They select these securities with the perception that they will provide enduring, consistent growth. These issues are designed to serve as the long-term core of a portfolio. The Dynamic List is more flexible and sensitive to change than the Core List. This group is designed to provide portfolios with an opportunistic interface with the marketplace. Securities selected include companies whose profits are improving but where that improvement may be limited in scope or duration. JPAM has a well-defined sell discipline that is strictly adhered to and consistently implemented. Factors that prompt a critical review include deterioration of fundamental characteristics, valuations reach excessive levels, portfolio sector or security position expands to an imprudent allocation or assets are reinvested to other securities that offer equal or greater opportunities for growth. Factors that demands a sale include earnings disappointment relative to consensus are sold from the portfolio.