Value

Many companies with promising fundamental outlooks remain relatively undervalued. The Eagle Value program offers investors the opportunity to purchase stock in such ventures that we feel are priced at a discount to the underlying value of the company.


Value Portfolio Characteristics

Typical Market Capitalization Benchmark Account Minimum Typical Turnover Typical Number
of Holdings
Greater than $5 billion Russell 1000
Value Index
$100,000 Generally below 35% 40 to 50

Quarterly Performance1 — Value (as of Sept. 30, 2014)

  1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Annual Russell 1000
  Gross Net Gross Net Gross Net Gross Net Gross Net Value Index
2000 -1.93% -2.41% -2.79% -3.26% 7.99% 7.49% 5.05% 4.58% 8.15% 6.13% 7.01%
2001 -4.75% -5.17% 4.02% 3.56% -11.87% -12.24% 10.46% 10.00% -3.55% -5.20% -5.61%
2002 4.43% 3.97% -9.49% -9.93% -19.25% -19.70% 7.85% 7.36% -17.69% -19.27% -15.53%
2003 -4.45% -4.87% 12.29% 11.80% 1.29% 0.85% 12.92% 12.47% 22.72% 20.63% 30.04%
2004 2.28% 1.84% 2.31% 1.88% 1.72% 1.29% 9.19% 8.71% 16.22% 14.25% 16.49%
2005 1.32% 0.89% 1.08% 0.60% 6.23% 5.75% 1.09% 0.63% 9.98% 8.01% 7.06%
2006 4.73% 4.30% 1.93% 1.50% 3.77% 3.32% 6.34% 5.87% 17.80% 15.80% 22.21%
2007 1.52% 1.07% 6.90% 6.45% 1.16% 0.70% -3.67% -4.09% 5.75% 3.91% -0.17%
2008 -6.08% -6.49% -1.15% -1.58% -5.54% -5.95% -20.28% -20.68% -30.09% -31.34% -36.85%
2009 -12.46% -12.87% 19.08% 18.55% 17.78% 17.28% 4.50% 4.03% 28.30% 26.02% 19.69%
2010 5.52% 4.92% -15.04% -15.51% 14.20% 13.59% 11.27% 10.64% 13.93% 11.41% 15.51%
2011 7.60% 7.01% 0.20% -0.34% -19.48% -19.94% 14.57% 13.99% -0.54% -2.67% 0.39%
2012 11.51% 10.93% -6.29% -6.79% 7.39% 6.80% 2.11% 1.56% 14.58% 12.15% 17.50%
2013 12.78% 11.73% 7.14% 6.14% 5.46% 5.16% 9.53% 8.91% 39.57% 35.84% 32.54%
2014 4.53% 3.97% 6.65% 6.40% -0.39% -0.63% 11.05% 9.93% 8.07%

Compounded, Annualized Rates of Return Net of Fees (as of Sept. 30, 2014)

Year Percentage $100,000 Compounded
1 20.14% $120,134
3 24.80% $194,362
5 13.98% $192,372
10 8.50% $226,078
Since Inception (July 1, 1996) 7.36% $365,292



Risk Information

The risks associated with Value investing are based on the potential for a company's stock price to rise based upon anticipated changes in the market or within the company itself. However, if these changes either do not occur or do not have the expected impact, the company's stock price may suffer. Of course, other factors relating to a company or to general market conditions may also contribute to price declines. Value stocks have historically been sensitive to economic cycles and investor sentiment that can affect volatility and risk. The biggest risk of equity investing is that returns can fluctuate and investors can lose money.

Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree. Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take up to 60 days to become fully invested.

Disclosures

(1) The calculation of the performance data includes reinvestment of all income and gains and is depicted on a time-weighted and size-weighted average for the entire period. Calculations include reinvestment of all income and gains. Performance is shown before (gross) and after (net) the deduction of both management fees and transaction costs. Performance figures include all of Eagle’s retail managed accounts. All composite performance data through 2013 have been verified by an internationally recognized accounting firm. Performance data for the current year have not been audited and are subject to revision. No inference should be drawn by present or prospective clients that managed accounts will achieve similar investment performance in the future. Because accounts are individually managed, returns for separate accounts may be higher or lower than the average performance stated above.

Performance data for the current year has not been audited and are subject to revision. Thus, the composite returns shown here may be revised and Eagle will publish any revised performance data.

Investing in equities may result in a loss of capital.