Epoch Free Cash Flow
Interesting article from SmartMoney regarding Epoch Investment Partners and their focus on what companies do with free cash flow as being essential to superior risk adjusted returns. Not exactly familiar with Epoch, but their theory goes right along with our Net Payout Yield Portfolio. Epoch Investment Partners is a specialized money management firm that oversees some $12B in assets (just slightly more then Stone Fox....lol). According to the article they've easily beaten the market because they focus on companies with strong cash flows that distribute the money to shareholders via buybacks, dividends, or paying back debt. They'll also consider companies that make acquisitions or expand internal capital projects as long as the deal exceeds the cost of capital. Our Net Payout Yield Portfolio focuses on companies with strong buybacks and/or dividends. The debt position of a company is a 3rd consideration but not as big of a focus. Though, any company that issues debt to buyback ...