Value Equity Strategy 2021-10-28T10:48:46-05:00

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

Rob Day – Equity Analyst with Mitchell Capital since 2020

Miles Green – Equity Analyst with Mitchell Capital since 2021

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: September 30, 2021

Strategy Characteristics

Dividend Yield1.4%
Free Cash Flow Yield2.8%
Price / Book5.2x
Debt / Equity137%
Forward Price / Earnings18.9x
Return on Equity17.8%

Top Ten Holdings

PositionAllocation %
iShares Core S&P Value5.2
JPMorgan Chase & Co5.0
Danaher Corp4.9
Target Corp3.8
Walt Disney Co3.8
American Express3.6
Morgan Stanley3.3
Walmart Inc3.3
Bank of America Corp3.3
Goldman Sachs Group3.1

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The information above is intended solely to provide insight into how the manager analyzes securities, and are not a recommendation for any particular security or strategy. There is no assurance securities will remain in the portfolio or will be profitable. This is a list of top ten holdings based on a percent of total and is not a full list of securities.

Sector Weightings

SectorPortfolio %
Consumer Discretionary9.7
Consumer Staples7.4
Health Care13.0
Informational Technology11.4
Real Estate0.0
Communication Services6.8

Capitalization Profile

Portfolio %
Median market cap$116.1B

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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