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Equity Investment team

Principal Origin

Finding what we believe are ideal companies through the powerful convergence of objective evidence and human judgement.

Our investment approach

Principal Origin targets the most profitable and fastest-growing global equity companies at reasonable prices. Committed to hard evidence rather than subjective opinion, we assess management quality purely through fundamentals and consciously avoid meeting with companies.

We use a clear-cut, repeatable, and systematic process that replaces ego with evidence and objectivity to isolate four equally weighted key characteristics we have identified as exemplifying the ‘ideal’ company.

Four equally weighted key characteristics
 

Four equally weighted characteristics

Positive capital management

Evidence that capital is being managed to create shareholder value.

Undervaluation

Current value of future cash flows undervalued by the market.

Earnings revisions

Strong, positive, and consistent profit forecast upgrades.

Share price trend

Established and rising share price trend supported by a high degree of price “energy” with no resistance points.

Explore our featured equity strategy.

To help you effectively balance risk and return, we make available equity strategies that have historically delivered attractive returns.

Global Smaller Companies
Targeting profitable and fast-growing small-cap companies at reasonable prices.
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Sustainable investing approach

When it comes to sustainable investing, we empower investors by offering choice, confidence, and flexibility.

We are interested in the long-term sustainability of returns of companies. Our focus on the quality and sustainability of financial returns, which is central to our investment process, results in consistently avoiding companies with larger carbon footprints.

  • We follow the evidence and decile rank all companies based on their sensitivity to carbon emissions using both proprietary metrics and the integration of multiple ESG data sources.

  • Our flexible portfolio construction framework allows us to ‘turn the dial’ on our bespoke metrics increasing their importance relative to our traditional stock selection criteria.

  • We believe that our focus on ESG metrics shouldn’t compromise alpha or potential investment returns.

Get to know our equity investment teams.

Our distinct and highly experienced equity investment teams are committed to delivering consistent investment results.
Principal Aligned

Long-term, bottom-up fundamental investors managing U.S. large-cap and mid-cap equity portfolios with a specific preference for high-quality businesses run by owner-operators.

Principal Dynamic Growth

Specializes in the management of small-, SMID-, and mid-cap U.S. growth equities using a bottom-up, growth-oriented approach to find good companies that are getting stronger and exceeding investor expectations.

Principal Edge

Committed to fundamental analysis and the belief that quality companies make good stocks with the patience and confidence to invest in SMID-, mid-, and large-cap U.S. equities over the long term.

Principal Equities

With experienced resources around the world, combining global insights with local knowledge to deliver a wide range of fundamental and systematic specialized equity investment solutions spanning all regions and market caps.

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Past performance does not guarantee future results.

Equity markets are subject to many factors, including economic conditions, government regulations, market sentiment, local and international political events, and environmental and technological issues that may impact return and volatility.

ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group’s process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.

Principal Origin is a trade name of Origin Asset Management LLP, an affiliate of Principal Global Investors.