Large Cap Strategy

The Punch Large Cap Equity Strategy takes a hub-and-spoke approach to building a portfolio of large cap companies.  

This means that a “hub” of closed-end or index funds is surrounded by “spokes” of concentrated positions in individual stocks with market capitalizations generally over $5 billion.  We take this approach to investing in large cap, liquid markets because, often, larger companies are more widely followed, their prospects are more widely known, and their shares are more efficiently priced.

  • We invest in closed-end funds because they often trade at either a discount or a premium to their net asset value.
  • We use closed-end funds to gain exposure to a basket of securities at a discounted price while receiving an above average yield.
  • We buy and hold concentrated positions in stocks which we think will outperform the broader market.
  • We emphasize high quality franchises with reliable and predictable earnings, a reputable management team and above-average returns on capital.

The strategy’s objective is to outperform the S&P 500 Index over full market cycles.

"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes."

- Warren Buffett

Since its inception, the Large Cap Strategy has outperformed the S&P 500 Index while also enduring less volatility. We believe that this success over the years has been a result of our careful stock-picking and low-turnover approach in an asset class where information is abundant.