WALNUT CREEK, Calif.—Litman Gregory Fund Advisors, LLC, an affiliate of wealth management firm Litman Gregory Asset Management, today announced the addition of Evermore Global Advisors, LLC as a sub-advisor to the Litman Gregory Masters International Fund, effective March 22, 2017.
Evermore Global Advisors is majority-owned by its founders, David Marcus and Eric LeGoff. The firm is based out of Summit, New Jersey, USA.
The Litman Gregory Masters International Fund is a core international equity fund that provides access to the highest-conviction investment ideas of a group of highly skilled managers with varying stock-picking styles. Evermore joins five existing sub-advisor teams on the fund, including Harris Associates, Lazard Asset Management, Northern Cross, Pictet Asset Management, and Thornburg.
“We have been performing due diligence on Evermore Global Advisors for several years,” said Rajat Jain, Litman Gregory Principal and Co-Portfolio Manager. “Marcus and his team have a unique value-oriented special-situations investment approach. Their passion for stock picking and genuine enthusiasm for running a concentrated portfolio from the outset has been very clear.”
The Evermore investment team seeks out misunderstood and under-researched special situations (e.g., those companies undergoing some form of strategic change, such as reorganizations, spin-offs, merger-arbitrage, etc.) that are trading at deep discounts to the team’s estimate of intrinsic value and where catalysts exist to narrow that discount.
After the addition of Evermore, the overall International Fund portfolio will retain its “core” characteristics, i.e., not tilted in a material way to either “growth” or “value” style factors.
Evermore’s portion of the International Fund portfolio will be managed by David Marcus, co-founder of Evermore Global and the lead portfolio manager on the Evermore Global Value Fund and separate accounts the firm manages for institutional investors.
“Based on our research, we believe Marcus is a disciplined, intellectually honest, and independent-minded investor,” says Jain. “He already runs a highly concentrated mutual fund, the Evermore Global Value Fund, which is comprised of 40 or less stocks, and also runs several more concentrated separate accounts. We believe they have the potential to deliver strong long-term returns and will add valuable diversification benefits to the International Fund.”
For more information and analysis on this manager addition, see our due diligence report.