Overview
Overview
Epoch Investment Partners, Inc. (“Epoch”) seeks to provide long-term capital appreciation by investing in companies with attractive and persistent net return on invested capital (ROIC) with a history of generating free cash flow and have management teams committed to using that cash to reinvest for capital growth.
Philosophy
Philosophy
Epoch believes that the best predictors of long-term shareholder return are growth in free cash flow and management’s skill in allocating that cash. Epoch’s approach centers around analysis driven by financial metrics, primarily free cash flow, believing:
- Free cash flow generation creates value
- Sound capital allocation drives growth in value
- Incorporates the time value of money
Process
Process
Epoch invests primarily in companies that generate increasing levels of free cash flow and, in their view, allocate free cash flow effectively to grow the value of the company. They seek to identify companies with a consistent, straightforward ability to both generate free cash flow and to reinvest it in a way that generates a return on investment that is greater than the firm’s cost of capital.
Epoch evaluates whether a company’s high ROIC is likely to be sustainable by examining the structure of the business, the quality of management and its commitment to a sensible capital allocation policy, and the financial strength of the company.
They may sell or reduce a position in a security when it believes its investment objectives have been met or if the investment thesis is failing to materialize.
Team
Team
Epoch Investment Partners
Global equity manager with a distinct perspective on the long-term drivers of shareholder return.
Global asset management firm that manages U.S., non-U.S. and global equity strategies for institutional and intermediary clients; their investment strategy is based on fundamental research and seeks to invest in companies that can grow free cash flow and allocate it effectively for the benefit of shareholders.
