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BirdRock Large Cap Strategy & Process

The BirdRock Large Cap Value Strategy is a discretionary equity product that invests within 30-50 companies with market caps <$6BN and trade as part of the Russell 1000 Value Index. Our investment process is characterized as bottom up fundamental and rules-based; employing both quantitative and qualitative screening/research elements. We utilize both “traditional” and “relative” value metrics/screens, some of which are proprietary. Historically, our “value add” through active management is more attributed to stock selection vs. activity, timing or tactical factors as a result from well delineated research, internally developed screens and value bias(s).

Our firm’s philosophy towards large cap investing is straightforward: that markets will reward value-based companies showing improving fundamentals and/or increasing profitability; and that we should dismiss companies when either fundamentals and/or forward earnings expectations are either displayed or come into question.

  • A core strength of our strategy is the combination of interpreting company earnings revisions coupled with our process that utilizes “relative” and “traditional” value metrics/characteristics as determinants for a company’s future price performance.
  • The strategy does not consist of any "deep" value issues; typically, only profitable companies that trade within the Russell 1000 Value index. Therefore, after our initial screening(s), an important component of the stock-picking process is our analysis of various balance sheet and income statement ratio interpretations versus both a company’s industry and its peers.
  • Price targets are established using earnings guidance as well as past and projected earnings growth rates which are inputted within our price forecasting models.  These inputs are guidelines and often subject to modification as markets and company price change. The strategy utilizes earnings metrics and any revision(s) as an important “factor” component within the investment process.
  • A company assessment and/or “sell-trigger” is initiated within the portfolio as soon as a company’s revisions show either a fundamental deterioration and/or other qualitative reasons. This philosophy/process has been in place since strategy inception in 2006.

Click here to access the BirdRock Large Cap Value quarterly performance tearsheet.

Contact Aaron Soderberg, Director of Institutional Marketing/Client Services at to learn more or to schedule a manager’s conference call.

Get in Touch

BirdRock Asset Management
9433 Bee Caves Rd
Austin, TX 78733 

Phone: (512) 236-0071
Fax: 512-430-1346

ManagerDecade 4Q 2014