Mid Cap Private Market Value

Process

Estimating intrinsic value is at the heart of every equity management strategy. A disciplined, repeatable process sets a manager up for success, while a loose intellectually inferior model for value almost guarantees underperformance. The anchor in Reinhart Partner's mid cap value strategy is intrinsic valuation methodology - Private Market Value.

Quality First - Valuation Second

Screening the Midcap Universe – 1200 Companies

Screening midcap

Fundamental Analysis – Research Focus

Research focus

Valuation Discipline

Sigma Aldrich

Private Market Value - The Anchor

  • PMV is what an acquirer would be willing to pay
    for the entire company (per share).
  • PMV is derived by first observing actual takeover valuation multiples.
  • We utilize different metrics by industry to capture appropriate value-drivers.
  • Stock prices are more volatile than the underlying value
    of the franchise, which creates unique investment opportunities.
  • PMV becomes the "anchor" by which all decisions are framed within an emotional market.
  • New names are purchased at a 30% discount to PMV, and stocks are sold when they reach PMV.
  • The gap between price and PMV serves as an objective basis to trim or add to existing holdings.

Benefits of utilizing a PMV approach

  • Objective
    Measures what buyers will pay for companies.
  • Disciplined
    An anchor in the midst of emotional markets.
  • Opportunistic
    Takes advantage of market volatility.
  • Custom
    Applies to unique value methodology to each sector.
  • Dynamic
    Captures changing industry fundamentals & outlook.
  • Strategic
    Helps to identify key value drivers for every stock.

Experienced Portfolio Management Team

Brent Jesko has 17 years of investment experience managing mid cap and small cap portfolios

Prior experience in managing assets in excess of $6 billion

Performance Incentive Plan
Aligns managers' and clients' interests to reward long-term performance

Brent C. Jesko

Brent C. Jesko
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Matthew T. Martinek, CFA

Matthew T. Martinek, CFA
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K. C. Pinsoneault, CFA

K. C. Pinsoneault, CFA
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William C. Gray, CFA

William C. Gray, CFA
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Josh D. Wheeler, CFA

Josh D. Wheeler, CFA
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