Alpine Saxon Woods Capital Return Strategy

Overview

Our Capital Return Strategy focuses on identifying financially sound companies with a proven history of paying and raising dividends alongside meaningful share repurchase programs. We prioritize well-capitalized firms led by management teams committed to growing free cash flow, which supports sustained dividend increases and share buybacks. We carefully evaluate each stock’s current valuation against its historical range and future growth prospects to determine its attractiveness.

Portfolio Construction

• Stocks with liquidity—able to liquidate position over 5 days
• Typical position size 2% to 5%
• Typical number of holdings 30 to 45
• Limit net security concentration to no more than 10%
• Limit net sector exposure: typically 25%
• Review quantitative risk management statistics in order to measure where and in what form risk exists: including ex ante, tracking error and factor risks.

Risk Controls

Sell Discipline

• Change in fundamentals
  
  • A position no longer meets capital return parameters of dividend increases and/or buybacks
  • Original investment thesis has changed
  • Catalysts no longer exist
  • Operating health deterioration
  • Financial health deterioration
• Valuation
  
  • Stock reaches valuation target
• Diversification
  
  • Individual security limits
  • Sector limits

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