Equity
Madison International Equity
Strategy Overview
Madison International Equity is an actively managed, high-conviction strategy that seeks to deliver superior returns while minimizing the risk of capital loss. To pursue this goal, we emphasize high-quality growth companies domiciled outside the United States that exhibit sustainable competitive advantages and consistent cash flow. We conduct extensive research to build a high-conviction portfolio of stocks that meet our criteria, purchased at reasonable valuations.
Key Facts
Madison International Equity ADR
Invests in foreign companies that meet our criteria by purchasing American Depository Receipts (ADRs) listed on U.S. exchanges.
| Benchmarks | MSCI ACWI ex-USA, MSCI EAFE |
|---|---|
| Strategy Inception | June 2007 |
| Positions | 30-60 |
| Investment Vehicles | Separate Account |
Madison International Equity Local Share
Invests in foreign companies that meet our criteria by purchasing shares directly on the local stock exchange.
| Benchmarks | MSCI ACWI ex-USA, MSCI EAFE |
|---|---|
| Strategy Inception | August 1996 |
| Positions | 40-70 |
| Investment Vehicles | Separate Account |
Experienced Management
Thomas Tibbles, CFA®
Head of International Equity Team, Portfolio Manager
Patrick Tan
Portfolio Manager, Analyst
Alyssa Rudakas, CFA®
Portfolio Manager, Analyst
Betty Tam
Director of Research & Technology
Investment Process
Our search for extraordinary companies starts by identifying those with superior growth and profitability characteristics and strong financial conditions across the investable universe, utilizing our unique TripleHit filter. We then implement our proprietary STARGazr ranking system to prioritize high-potential candidates and conduct extensive fundamental analysis to further narrow down the pipeline. Finally, the basis for stock investment decisions is a thorough analysis of six key factors:
- Earnings per share growth over a three-year horizon
- Price/earnings to growth ratio
- Momentum
- Valuation
- Earnings per share estimate revisions
- Upside to target price
Defining Characteristics
Active and diversified
An actively managed international strategy diversified across developed and emerging markets, focused on high-quality companies.
Growth focus
We invest in industry-leading companies that can generate sustainable earnings growth.
Bottom-up stock selection
We employ a fundamental, bottom-up approach to stock selection within a risk-controlled framework.
Experienced International Growth Team
Portfolio managers have over 100 years of combined investment experience.
Investing in foreign securities presents risks that could be greater or different from investing in U.S. securities. These risks include currency risk caused by fluctuations in currency values relative to the U.S. dollar, political and economic risks, higher transaction costs, and substantially different standards for regulatory, accounting and public disclosure and availability of corporate information. These risks can be greater with some emerging markets securities.
Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only, and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance.
The TripleHit filter implements a series of quantitative and qualitative screens to identify companies that have consistently been industry, sector and universe leaders or have this ability. The result is the STARList of over 500 companies which we believe are excellent. Portfolios are constructed utilizing stocks sourced from this select group of companies.
The STARGazr is our proprietary ranking system based on self-developed custom metrics. It prioritizes which stocks of the excellent companies on the STARList are most attractive and timely for focused active research.
The MSCI ACWI ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets countries (excluding the US) and 23 Emerging Markets countries. With 1,843 constituents, the index covers approximately 85% of the global equity opportunity set outside the US.
The MSCI EAFE (Europe, Australasia & Far East) Index is a free-float adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada.