Since 2008, the adviser to the Barrow Funds has sought to provide investors with intelligent ways to earn above-average returns with below-average risk.
The Barrow Funds are managed by Barrow Street Advisors LLC, an affiliate of Barrow Street Capital LLC, an investment firm founded in 1997. Barrow's proprietary Quality-meets-Value (“QMV”) strategy is based on extensive experience with private and public equity investment over 17 years. QMV evaluates and ranks the quality and value of companies based on various factors, including, without limitation, market pricing, intrinsic value, return on capital, profitability, cash flow, growth, and debt level.
The Barrow Funds seek to generate attractive returns by:
- Investing with a large Margin of Safety† in companies that Barrow believes are high quality and significantly undervalued (long positions) or low quality and overpriced (short positions)
- Diversifying across companies, market capitalizations, and industry sectors
- Deploying an investment process that is disciplined, dispassionate and patient
Today, the Barrow Funds comprise two equity mutual funds:
The Fund employs a long-only investment strategy:
- Goal: capital appreciation; seek to outperform the long-term return of the S&P 500 Index.
- Portfolio: 150-250 companies that Barrow believes are high quality and significantly undervalued.
- Significant diversification across companies, three market cap segments (large, mid, small) and multiple industry sectors.
The Fund invests in long portfolios (same as Value Opportunity Fund) and short portfolios:
- Goal: capital appreciation while also attempting to reduce volatility and preserve capital during market downturns.
- Long Portfolio: 150-250 companies that Barrow believes are high quality and significantly undervalued.
- Short Portfolio: 600-800 companies that Barrow believes are low quality and overpriced.
- Significant diversification across companies, three market cap segments (large, mid, small), various industry sectors, and long/short portfolio weightings.
† Margin of Safety: Benjamin Graham, considered to be the father of value investing philosophy, wrote “the ‘margin of safety’ resides in the discount at which the stock is selling below its minimum intrinsic value, as measured by the analyst.” Graham, B. and Dodd, D. (1951) Security Analysis. New York, NY: McGraw-Hill.
Barrow In The News
- Barrow Funds David Bechtel’s Top Picks in Forbes
- Barrow Funds David Bechtel Discusses the Market, the Economy and a Rebound in Quality Stocks on Bloomberg Markets
- Barrow Funds David Bechtel Makes the Case for Active Management on Barron’s
- Barrow Long/Short Opportunity Fund Celebrates Three-Year Anniversary