Cheswold Lane’s international investment philosophy is based on the belief that a portfolio of stocks with high dividend yields and low valuation will deliver superior risk-adjusted returns over time. Historically, high dividend yield portfolios have also had lower volatility and lower risk of capital loss. We invest in foreign ordinary securities of large capitalization companies in developed markets outside of the US. Our strategy follows a value discipline, but unlike peers, our product’s bias is towards lower risk, rather than higher risk.

Within the stock selection process, we believe the market looks to the past, especially the most recent past, to forecast long term industry and corporate returns and growth. This leads to market inefficiencies which Cheswold Lane seeks to exploit for its clients. Our multi-factor model highlights companies and industries where quality businesses are trading at discounts to their intrinsic value. The primary factors used in our model are valuation and CFROI® and secondarily, momentum. Enterprise Value to Cash Flow is our dominant valuation metric. Our proprietary fundamental research focuses on industry and company marginal capital returns to predict catalysts for market revaluation. By investing in low valuation companies, Cheswold Lane positively skews the risk/reward equation and reduces the potential for capital loss.