Cambiar’s intellectual contribution is to identify companies that have meaningful upside potential.

A distinguishing characteristic of the Cambiar investment discipline is the high return hurdle demanded of new positions entering our portfolios. All new purchases must possess the potential for a 50%* return over a forward 1-2 year time horizon. It should be noted that this 50% hurdle rate does not require underlying financial assumptions that the company never achieved during its operating history. Rather, Cambiar deconstructs the elements of our expected return in line with the underlying investment thesis and catalysts, understanding how various factors – growth, margin expansion, multiple expansion, dividend yield and other capital structure adjustments – can each contribute over the course of our holding period to generate a 50% total return. Clearly, we believe that future corporate developments will unfold more favorably vs. how they are anticipated by the market at the time of investment.

While recognizing that we may not achieve this return target over our desired timeframe – or at all, for that matter – we do believe that this more stringent return requirement enables our investment team to channel their research efforts in those situations which offer the most compelling risk/return tradeoffs.

* Cambiar's objective of selecting stocks having a potential for 50% appreciation may or may not be realized.