Our investment philosophy recognizes that the fundamentals of stocks are more stable than the stock price. We use our proprietary Fair Value Model™ to identify stocks with market prices below their Fair Value. The Fair Value Model™ rewards companies with consistent results, attractive growth rates, and low financial leverage. Cornerstone's universe of 800 stocks consists of the S&P 500 plus 300 other names, including 50-60 multinational ADR's. All candidates for the portfolio screened from our universe must meet high standards for liquidity, financial transparency, and disclosure. Once candidates are identified, fundamental research on these names is conducted by the Investment Team in daily investment meetings. Our Concentrated Equity portfolio consists of 30 securities with a typical minimum holding of 2% and maximum of 6% in any one name. Our sectors are limited to 30% of the portfolio with no minimum.
