Value Equity Strategy 2020-10-21T17:21:52-05:00

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: September 30, 2020

Strategy Characteristics

Dividend Yield2.2%
Free Cash Flow Yield4.4%
Price / Book4.8x
Debt / Equity0.7x
Forward Price / Earnings17.1x
Return on Equity20.3%

Top Ten Holdings

PositionAllocation %
iShares Core S&P US Growth9.7
Apple Inc5.3
Danaher Corp4.6
Target Corp.3.9
Walmart Inc.3.9
JPMorgan Chase & Co3.9
Pepsico Inc3.7
Walt Disney Co3.5
Amgen Inc.3.4
Cisco Systems Inc.3.2

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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 Discretionary5.7
Consumer Staples10.8
Health Care19.7
Informational Technology17.9
Real Estate0.0
Communication Services10.5

Capitalization Profile

Portfolio %
Median market cap$68.9B

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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