Cardinal utilizes a conservative investment philosophy in managing equity portfolios. Using traditional fundamental security analysis, Cardinal selects large-cap stocks selling at below average valuations. We believe that dividends and capital appreciation are important components of total return objectives, and we strive to emphasize both in portfolio construction.

Cardinal’s investment strategy is driven by extensive research focused on investing in quality companies. We use a bottom-up, fundamental value approach with an emphasis on the long-term health of companies and industries. Since Cardinal’s founding, we have always considered qualitative factors including board governance, management quality, employee relations and industry regulations. Formally adopting ESG considerations was the next logical step and goes hand in hand with our view of investing in companies for the long term. We incorporate all pertinent information into our analysis of companies under consideration for inclusion in client portfolios. We believe that leaders of outstanding companies place a high emphasis on all factors that materially impact their businesses. Companies with a history of adapting to challenges and taking advantage of opportunities tend to be more stable with good financial track records.

Cardinal became a signatory to the UN-PRI in January 2021.

Cardinal provides downside protection of capital through the application of a disciplined investment approach. Our focus on dividends and dividend growth for equity investments, play an important role is producing conservative portfolios. Investment opportunities are deeply vetted by our in-house research team to identify possible risks before making a purchase and we continue to closely monitor companies after making the initial investment for any changes to our initial investment thesis. Portfolio construction and rebalancing are also an important component of risk management, including managing stock, sector and industry weights. Our value approach is also a significant factor is managing risk exposure, not continuing to own securities that have moved above of our target P/Es and become overvalued.