Lyrical Asset Management's International Value Equity Portfolio Celebrates Three-Year Anniversary

Portfolio continues to outperform industry benchmarks while maintaining a balanced and diversified deep value investment approach

NEW YORK, June 7, 2022 /PRNewswire/ -- Lyrical Asset Management LP ("Lyrical"), a New York-based public equity investment management firm, today announced the three-year anniversary of its International Value Equity portfolio.

Lyrical's International Value Equity strategy invests principally in a diversified portfolio of common stocks of mid-capitalization and large-capitalization companies with low valuations relative to their long-term normalized earnings. The portfolio is led by Co-Portfolio Managers, John Mullins and Dan Kaskawits, who have over 28 years combined investment experience.

Since inception, the Lyrical International Value strategy has outperformed benchmark MSCI EAFE and EAFE Value Indices by 270 bps and 350 bps annualized, respectively, net of fees. The portfolio has also generated a total net return of 29.7% compared to the EAFE at 20.6% and EAFE Value at 17.6%.   

Jeffrey Keswin, Co-Founder and Chief Executive Officer of Lyrical Asset Management LP, said, "While past returns have been gratifying, we are most excited about the future. Our team calculates approximately 87% upside to intrinsic value for the portfolio, the highest level since 2020, and a forward P/E multiple of only 9.9x, for a group of companies that have grown earnings at 6.9% per annum since 2007. We believe this to be the best combination of value and growth since our launch."

The Lyrical International Value strategy parallels the disciplined approach of the firm's U.S. value strategy, which dates back to the beginning of 2009.

Lyrical Asset Management, an affiliate of Lyrical Partners, L.P., is a fundamental value investment firm. The firm, founded in 2008, seeks to combine value with quality and analyzability to identify undervalued securities, create resiliency across its investment portfolios and help maximize long-term investment results. Lyrical Asset Management offers investors multiple vehicles through which to invest, including long-only 1940 Act Mutual Funds, separately managed accounts, and UCITs funds. Each vehicle invests in liquid securities, is transparent to investors and has historically been tax efficient. For more information, please visit www.lyricalam.com

THIS IS NOT AN OFFERING OR THE SOLICITATION OF AN OFFER TO INVEST IN THE STRATEGY PRESENTED. ANY SUCH OFFERING CAN ONLY BE MADE FOLLOWING A ONE-ON-ONE PRESENTATION, AND ONLY TO QUALIFIED INVESTORS IN THOSE JURISDICTIONS WHERE PERMITTED BY LAW.

THERE IS NO GUARANTEE THAT THE INVESTMENT OBJECTIVE OF THE STRATEGY WILL BE ACHIEVED. RISKS OF AN INVESTMENT IN THIS STRATEGY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS OF INVESTING IN EQUITY SECURITIES GENERALLY, AND IN A VALUE INVESTING APPROACH, MORE SPECIFICALLY. MOREOVER, PAST PERFORMANCE SHOULD NOT BE CONSTRUED AS AN INDICATOR OF FUTURE PERFORMANCE. THE FOREGOING INFORMATION HAS NOT BEEN PROVIDED IN A FIDUCIARY CAPACITY, AND IT IS NOT INTENDED TO BE, AND SHOULD NOT BE CONSIDERED AS, IMPARTIAL INVESTMENT ADVICE.

NET RESULTS INCLUDE A 0.85% ANNUAL BASE FEE.

THE MSCI EAFE INDEX IS AN EQUITY INDEX WHICH CAPTURES LARGE AND MID CAP REPRESENTATION ACROSS 21 DEVELOPED MARKET COUNTRIES AROUND THE WORLD, EXCLUDING THE US AND CANADA. WITH 825 CONSTITUENTS, THE INDEX COVERS APPROXIMATELY 85% OF THE FREE FLOAT-ADJUSTED MARKET CAPITALIZATION IN EACH COUNTRY. THE MSCI EAFE VALUE INDEX CAPTURES LARGE AND MID CAP SECURITIES EXHIBITING OVERALL STYLE CHARACTERISTICS ACROSS DEVELOPED MARKETS COUNTRIES AROUND THE WORLD, EXCLUDING THE US AND CANADA. THE VALUE INVESTMENT STYLE CHARACTERISTICS FOR INDEX CONSTRUCTION ARE DEFINED USING THREE VARIABLES: BOOK VALUE TO PRICE, 12-MONTH FORWARD EARNINGS TO PRICE AND DIVIDEND YIELD.

*Earnings growth reflects the historical change of earnings per share of the companies in the LAM International Value Equity strategy as of May 31, 2022 using current composite weights and including, for each calendar year, only the portfolio companies for which data is available. Actual weights of such holdings varied over time. Price-to-earnings ratios are computed using consensus earnings data per FactSet, which include certain adjustments from reported, GAAP earnings.

Contact:

Craig Lifschutz
Managing Director
Lyrical Asset Management LP
[email protected]

SOURCE Lyrical Asset Management LP