When you invest with Sentry, you know exactly what you’re getting. We don’t use labels like value or growth to describe how our portfolio managers manage money. We simply call it our house style, and it works.
Our consistent, disciplined house style is focused on delivering superior risk-adjusted returns. And it’s applied across all of our funds, regardless of asset class or geography.
The results of our house style are not only reflected in our performance. Our funds typically don’t look like other funds. We tend to have fewer holdings, and we don’t pay attention to indices in terms of securities or sector weightings. Instead, we focus on finding the highest-quality, healthiest companies that share specific attributes – attributes that help them weather market volatility and provide the greatest growth potential.
What does a healthy company look like? It is led by a solid management team; has a strong balance sheet, strong free cash flow and low debt; and allocates capital wisely – by either reinvesting in the business or paying dividends to shareholders.
Our ability to adhere to a consistent house style is rooted in the long tenure of our portfolio managers and the fact that they have honed their craft here at Sentry.
The commitment to the house style is deeply rooted in the organization. Sandy McIntyre, who is the architect of the house style, was responsible for mentoring our first generation of portfolio managers on its intricacies. Those managers, now senior leaders within our firm, are doing likewise with the next generation of Sentry managers. We also continue to add talent – experienced managers with proven track records – with a bias towards those that demonstrate the key tenets of the house style.
Although our portfolio managers share a common investment philosophy and process, they are encouraged – in fact, expected – to be independent thinkers. This is again made possible thanks to our independence as a company. There is no room for herd mentality here.
We value the difference of opinion that each portfolio manager brings and the opportunity to share ideas with each other. A culture of independent thinking coupled with collaboration creates a healthy platform from which to make the best possible investment decisions.
Chief Investment Strategist James Dutkiewicz: How investors benefit from collaboration at Sentry
Our managers are not compensated on their ability to match or slightly outpace an index. Instead, the majority of their compensation is directly tied to delivering superior risk-adjusted returns. This means that their interests are aligned with the interests of our investors.
So how do our managers deliver the highest possible risk-adjusted returns for investors?
By having the freedom to do what other money managers may not. For instance, we’ll invest in companies out of the mainstream because of our unique approach to assessing risk and growth potential. Or we’ll likely have a portfolio with fewer stocks if the manager can’t find quality companies that meet our strict criteria.
Very simply, we can’t deliver superior risk-adjusted returns by building a portfolio relative to an index. We do it by trusting and empowering our managers to invest with confidence and conviction in their best ideas.
This is true active management.