River Road Asset Management

Our Philosophy

River Road’s investment management is firmly anchored in the firm’s Absolute Value® philosophy. This investing approach seeks to blend the best aspects of traditional “deep” and “relative” value strategies, aiming to generate attractive, sustainable, low-volatility returns over the long term while minimizing downside portfolio risk.

Our Approach

Absolute Value® Investing:

• Targets financially strong companies that generate predictable and sustainable cash flows and trade at attractive discounts (vs. challenged businesses trading at deep discounts or overvalued businesses that only appear affordable relative to higher-priced peers)
• Employs a bottom-up portfolio construction process that avoids market and index trends
• Focuses on less efficient areas of the equity market including small capitalization and out-of-favor securities, and securities with limited analyst coverage
• Culture of risk management
• River Road’s mantra, “keep mistakes small,” informs a balanced approach to diversification and a structured sell discipline that seeks to reduce portfolio volatility and the risk of permanent loss of capital