Investment Process
Thoughtful Analysis. Sound Discipline. Managed Risk.
SKBA's investment process has been in place since the founding of the firm. Our process integrates fundamental bottom-up research with our economic perspectives. Each step of our investment process, from idea generation to risk management, is designed to deliver attractive investment results while minimizing the risk of permanent loss of capital.
Universe and Idea Generation
SKBA begins with a universe of equity securities traded on major U.S. exchanges with a market capitalization generally greater than $2 billion. Investment ideas come from diverse areas, with the largest source being generated internally. SKBA's initial valuation metrics do not simply focus on "reported" earnings but instead on factors that are indicative of a company's underlying earning power and cash flows, as represented by its dividend policies, revenue stream and expected margins. Ideas are evaluated on their individual merits as well as in context of the desired portfolio characteristics. This value-driven approach involves finding opportunities where one believes that the market has underestimated the future cash flows of a company.
Security Selection and Analysis
In conducting security selection and equity analysis, SKBA focuses on investment risk, not simply market risk. SKBA formulates an investment hypothesis by understanding the capital allocation process of a company, its future opportunities, and competitive positioning. Furthermore, SKBA analyzes financial statements and conducts industry analysis to better understand the long-term structural changes that a company faces. Company research drives performance through value-added stock selection. We develop our own financial models, dividend probability analyses and expected value assumptions for each company we purchase.
Portfolio Construction and Risk Management
Portfolio construction is based on establishing a diversified portfolio and maintaining certain portfolio characteristics. Our objective is to construct a portfolio of 40-60 stocks diversified by sector to control for company-specific risk. Our bottom up approach to stock selection highlights industries and sectors with the most attractive valuations. Each existing or prospective holding is covered by a primary analyst and investment decisions are made by consensus among the portfolio managers. Security weights are determined on a combination of relative undervaluation to the other securities in the portfolio as well as establishing a diversified portfolio with desired characteristics. We continuously integrate risk management which is achieved through diversifying across economic sectors, purchasing securities below their expected values and monitoring hypotheses.



Terms and Conditions ("Terms")
Last updated: June 03, 2015

Please read these Terms and Conditions ("Terms", "Terms and Conditions") carefully before using the http://www.skba.com website (the "Service") operated by SKBA Capital Management LLC ("us", "we", or "our"). Your access to and use of the Service is conditioned upon your acceptance of and compliance with these Terms. These Terms apply to all visitors, users and others who wish to access or use the Service. By accessing or using the Service you agree to be bound by these Terms. If you disagree with any part of the terms then you do not have permission to access the Service.

Copyright notices:
With the exception of images used in this website, which are used under a creative commons license, all content on this website is Copyright 2015 SKBA Capital Management LLC.

Links To Other Web Sites
Our Service may contain links to third party web sites or services that are not owned or controlled by SKBA Capital Management LLC. SKBA Capital Management LLC has no control over, and assumes no responsibility for the content, privacy policies, or practices of any third party web sites or services. We do not warrant the offerings of any of these entities/individuals or their websites. You acknowledge and agree that SKBA Capital Management LLC shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, goods or services available on or through any such third party web sites or services. We strongly advise you to read the terms and conditions and privacy policies of any third party web sites or services that you visit.

Governing Law
These Terms shall be governed and construed in accordance with the laws of California, United States, without regard to its conflict of law provisions. Our failure to enforce any right or provision of these Terms will not be considered a waiver of those rights. If any provision of these Terms is held to be invalid or unenforceable by a court, the remaining provisions of these Terms will remain in effect. These Terms constitute the entire agreement between us regarding our Service, and supersede and replace any prior agreements we might have had between us regarding the Service.

Changes
We reserve the right, at our sole discretion, to modify or replace these Terms at any time. If a revision is material we will provide at least 30 days notice prior to any new terms taking effect. What constitutes a material change will be determined at our sole discretion. By continuing to access or use our Service after any revisions become effective, you agree to be bound by the revised terms. If you do not agree to the new terms, you are no longer authorized to use the Service.

Contact Us
If you have any questions about these Terms, please contact us.