The cornerstone of MVP’s investment philosophy is our belief that strong internal research and traditional, fundamental security analysis will lead to superior risk-adjusted investment performance. MVP believes stocks purchased at the best relative value based on expected future levels of earnings, cash flow and return on investment provide the greatest opportunity for appreciation potential with the least amount of risk. A disciplined investment process inclusive of bottom up stock selection and managed portfolio construction will result in superior returns. This style will typically have a predominance of stocks with below-average P/E ratios and above-average dividend yields while still maintaining reasonable earnings growth prospects.

At the core of MVP’s investment process is our team of experienced equity research analysts who conduct traditional fundamental analysis and propose recommended buy and sell ideas. The initial universe consists of stocks with market capitalization in excess of $2 billion in size. Through a variety of qualitative and quantitative sector specific screens, the team narrows the universe to a manageable list of around 300 companies. Each analyst has direct contact with the companies and seeks information from their customers, suppliers and competitors. The analyst evaluates drivers of corporate performance and provides detailed projections of earnings, cash flow and return on investments. These inputs form the basis for MVP’s Price Discovery and Relative Value models from which each stock in the universe is ranked. Based on MVP’s internal ranking process, the analyst’s recommends buy and sell ideas to the firm’s portfolio management team. The idea is prepared in written form which presents a “snapshot scorecard” of all the relevant inputs. This includes a description of the company, macro issues, and company issues. In addition, the analyst identifies why the stock is a timely purchase, potential risk and what would cause the stock to be sold. The portfolio management team reviews these inputs while considering portfolio construction. Each portfolio manager considers the merits of the analyst’s recommendation based on his/her own criteria and fit within the portfolio. The construction step considers sector and industry exposure, cross- correlation analysis and theme exposure. The portfolio manager works closely with the analyst to establish the viability of the idea and also draws on the expertise of the other portfolio managers. During the holding period, the position is monitored for performance, size and fundamental execution relative to expectations. The stock is sold if it no longer screens attractive, company/industry fundamentals deteriorate, economic issues change our sector view or the risk/return profile no longer fits the portfolio strategy.