Value Equity Strategy 2020-07-02T15:31:22-05:00

Value Equity Strategy


MCM’s Value Equity investment process focuses on identifying high quality companies experiencing below average margins and valuations, while exhibiting improving fundamentals, strengthening cash flows and a visible catalyst to return margins to historical averages. Through our proprietary quantitative screening, fundamental research and traditional valuation techniques, we seek total returns through capital appreciation and dividends.


The strategy seeks a consistent return through price appreciation and dividend income by owning equity securities and ETF’s of domestic companies. Our style is designed to meet a variety of investment objectives as we employ prudent diversification and diligent stock selection.


The Value Equity Strategy is our own unique blend of incorporating top-down macroeconomic analysis with bottom-up stock selection. Under the top-down viewpoint, we evaluate the current economic environment, monetary and fiscal policies, and secular trends to identify the sectors or industries that are most likely to outperform the market. We start with a universe of several thousand companies and exchange-traded funds, sorting this list down to a manageable number of investment alternatives through a rigorous series of proprietary quantitative screens that consider improvements in revenue, earnings, leverage and valuation relative to industry or sector averages. We are open to all market capitalizations, but most candidates will be larger than $500 million. After this screening, companies undergo a thorough analysis focusing on qualitative factors such as catalysts for further operational improvements, market position, proprietary advantages, management capabilities and insider ownership before investing. The strategy can hold international issuers, but will be comprised predominantly of domestic companies.


Jonn Wullschleger, CFA – PM, Principal with Mitchell Capital since 2000, analyzing equities since 1991

Rich Jones – PM, Principal with Mitchell Capital since 1995, analyzing equities since 1978

Brandon Reed, CFA – PM with Mitchell Capital since 2016, analyzing equities since 2014

What sets this strategy apart?

Long-term management team with ownership in the firm and investments in the strategy

Commitment to established and successful process

Flexibility allowing for responsiveness to changes in economic environment

Value Equity Strategy: March 31, 2020

Strategy Characteristics

Dividend Yield2.5%
Free Cash Flow Yield5.4%
Price / Book3.8x
Debt / Equity0.8x
Forward Price / Earnings12.6x
Return on Equity21.3%

Top Ten Holdings

PositionAllocation %
iShares Core S&P US Growth7.5
Microsoft Corp.4.3
Walmart Inc4.0
JPMorgan Chase & Co3.7
Apple Inc3.6
Danaher Corp3.6
Berkshire Hathaway Inc3.6
Walt Disney Co3.4
Pepsico Inc3.4
Amgen Inc3.3

Sector Weightings

SectorPortfolio %
Consumer Discretionary4.6
Consumer Staples11.2
Health Care20.1
Informational Technology17.1
Real Estate0.0
Communication Services11.2

Capitalization Profile

Portfolio %
Median market cap$96.7B

About Mitchell Capital Management

Mitchell Capital Management (MCM) was founded in 1987 and is an SEC Registered Investment Advisor. The firm manages portfolios and provides investment solutions for an array of investors nationwide, including individuals, foundations, union pension plans, retirement plans, endowments and associations. MCM has always been employee owned and intends to stay that way. Our fiduciary culture means our clients are the first priority in each decision we make.


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