Designed to outperform the market and value on a risk-adjusted basis
Marshfield Associates is a concentrated, long-only value investment adviser established in 1989. Marshfield is owned by its seven principals who have an average tenure of 23 years and they are located in. Each principal must invest in the same stocks that Marshfield buys for its clients and may own no other publicly traded equities.
I use Marshfield’s “Concentrated Core Strategy” inside a Separately Managed Account (SMA)* when I want to gain additional equity exposure beyond what is available inside Riverfront Investment Management’s models.
The Separately Managed Account is managed and traded by Marshfield and invested according to the opportunities available when the account opens. In fact, it can take up to 3+ years to get fully invested, particularly in frothy markets. Absolute performance return is based on when the account opens.
Marshfield’s SMA is highly concentrated, typically holding 16-20 stocks. They are disciplined adherents of their process and are extremely selective regarding the stocks they want to own. They seek resilient companies with long-term competitive advantages, and they require a margin of safety when making a new stock purchase. Moreover, they are willing to hold cash when they cannot find the opportunities they seek. Historically, their SMAs have been characterized by low turnover and less volatility than the market.
Marshfield Associates Team