About

Sanders Capital, LLC is a global investment manager with $20 billion in assets under management serving institutional and high net-worth investors. It is led by individuals with many decades of experience in investment research and value-oriented portfolio management disciplines.

A Message from Our CEO

I formed Sanders Capital with the aspiration to build a firm known for its investment acumen. As important, I want Sanders Capital to be known for the values that I hold dear—values shaped by my forty plus years in the asset management industry as an analyst, investor and CEO. They are:

Character Matters Most

I believe sustained success in this business is about character. Asset managers are fiduciaries. As such, their clients' interests must precede all else. The truly great, enduring firms in this industry are run by people who live this principle every day.

Interests Must Align

Financial incentives need to align the interests of asset managers to their clients without asymmetries. Managers should share in both the upside and the downside. For maximum alignment, managers must have sufficient "skin in the game." Restrictions on outside investments are also key, as they ensure client interests receive undivided attention.

Knowledge Conquers Emotion

Bouts of excessive optimism and despair characterize capital markets and are a primary source of wealth destruction. Knowledge, through research, converts these extremes from threat to opportunity. Knowledge provides the basis to do the unpopular, and the unpopular is almost always the most profitable.

Temperament Trumps Brilliance

Much is written about success in this business. Too often it is attributed to brilliance—such as seeing and capitalizing on some profound change early. Intelligence of this kind helps. But sustained success has more to do with temperament. It is about responding dispassionately and deliberately to change, especially unanticipated change, which is what occurs most often. In this context, equanimity and humility trump brilliance and are an antitode to over-confidence and excessive risk taking.

Inaction Counts

While unusual opportunity is occasional, risk is continual. If you are not being paid adequately to take on risk, which can be for long stretches, resist the temptation to do so.

Private, Focused, Client-Centric

Building a firm based on these tenets does not ensure success. Nothing does. But in my experience, it improves the odds. This is the foundation of Sanders Capital. We will remain a private, focused, client-centric firm, where knowledge is prized and viewed as our competitive advantage. I am energized to lead this firm.

Lewis Sanders Signature

Lewis A. Sanders, Chief Executive Officer

Investment Philosophy

At Sanders Capital, we believe that investors systematically overreact to adversity. This behavioral bias (known as loss aversion) unduly depresses asset prices, thereby producing investments with above-average returns. Adversity may be company-specific or span entire industries or asset classes.

The objective of Sanders Capital investment research is to identify assets subject to such pressures, especially where the adverse event will prove transitory. It is in that subset of investments where we uncover unique opportunity.

We analyze the full spectrum of opportunities generated by an event across multiple asset classes. This methodology greatly improves research insight and enhances our ability to trade off risk and return.

We are investors not traders. The holding period of investments in our portfolios will likely average around three years, about the time it takes for most dislocations to find resolution.

Investment Services

Value Equities Portfolios

For clients with fixed asset allocation policies, we offer Global and US Value Equity portfolios. Driven by our overall research and portfolio management disciplines, these portfolios benefit from the firm’s all asset research orientation, which we believe produces superior forecasts at the asset class level. This occurs especially during times of stress, when the equity portion of a company's capital structure can be compromised to resolve financing requirements. Opposite effects are common during robust periods, when corporate actions favor equity holders over lenders.

All Asset Value Portfolios

In these services, we exploit value opportunities across multiple asset classes in a single portfolio. Investment objectives of these portfolios are to generate attractive, absolute returns, while conforming to specified, absolute volatility targets. Targets range from low (comparable to bonds of short duration) to moderate (similar to the bond market overall) to high (comparable to equities). Portfolios are managed to achieve absolute returns at or above these volatility targets. These portfolios are contained in an All Asset Value Portfolio Series, offered by private placement memorandum.

Investment Process

Valuation

Sanders Capital's research teams screen the investment universe for securities or assets where the expected internal return meets or exceeds return targets of the services. Such forecasts are supported by extensive field research and disciplined valuation processes. The conversion of all forecasts to the common language of expected return enables comparisons of investments across the capital stack of corporate issuers and all other asset classes.

Our valuation processes include:

  • A present value modeling framework for common stocks that compares estimates of future free cash flow to current stock prices to compute expected returns. It then compares such returns to a broad universe of companies and establishes both absolute and relative views of return potential.
  • A fixed income cash flow modeling framework that compares market prices to predictions of loan performance to compute expected returns. Such returns take into account the idiosyncratic features of deal structure (conversion features, pre-payment options, etc.) and the cash flow pathways triggered by defaults and other factors.
  • Economic modeling at the global and national level. Models predict broad trends in corporate profits as well as supply and demand for real assets near and long term.
  • Surveillance systems to track predictions versus actual results.

Quantitative Tools

Quantitative factors that correlate with future stock and bond returns facilitate screening for opportunities, timing of purchases and sales and sizing of positions. They also signal forecasting error, useful in research review. Still, such tools are adjunctive to the portfolio management process. All investments must qualify on fundamental grounds.

Research Review

The inputs that drive these investment processes are subject to intensive research review and quality assurance by the funds’ Chief Investment Officers and Director of Research, in collaboration with both internal and external research analysts.

Portfolio Construction & Risk Assessment

Our portfolio construction process aims to maximize risk-adjusted returns by rank ordering investment options among qualifying investments according to expected return. We systematically assess these opportunities against estimates of absolute volatility and co-variance. Position weights among qualifying investments are set to maximize expected return for a given level of volatility as measured against the portfolio's return benchmark.

Team

Lewis A. Sanders

CEO & Co-CIO

Lewis A. Sanders is the founder, CEO, and Co-CIO of Sanders Capital, LLC.

Mr. Sanders was the former Chairman (2005-2008) and CEO (2003-2008) of AllianceBernstein L.P. He served as Vice Chariman and CIO since 2000, when Alliance merged with Sanford C. Bernstein & Co., Inc.

Prior to that, Mr. Sanders was the Chairman and CEO of Sanford C. Bernstein & Co., Inc. (1993-2000). In his 32 years at Bernstein, Mr. Sanders was also the President and COO, with senior responsibility for all research and investment management operations (1981-1993), EVP of research and investment management (1979-1981), and Research Director (1972-1981). Mr. Sanders joined Bernstein in 1968 as a Research Analyst, establishing credentials that would lead to his being named to the Institutional Investor All-America Research team four times. Before joining Bernstein, he was a Research Assistant at Oppenheimer Co. for two years.

Mr. Sanders serves as a board member of Memorial Sloan-Kettering Cancer Center and Weill Cornell Medical College, and as a trustee of The Rockefeller University and the Aspen Art Museum.

John P. Mahedy

Co-CIO & Research Director

John P. Mahedy is the Co-CIO and Research Director of Sanders Capital, LLC. He previously served as CIO of U.S. Value Equities at AllianceBernstein L.P. in 2009 and was Co-CIO (2003-2009). Mr. Mahedy also served as AllianceBernstein’s Director of Research for U.S. Value Equities (2001-2008).

Prior to that position, Mr. Mahedy was a senior research analyst in Sanford C. Bernstein & Co., Inc.’s institutional research and brokerage unit, covering the domestic and international energy industry (1995-2001) and the oil services industry (1988-1991). He also covered oil services at Morgan Stanley (1991-1995). Mr. Mahedy was ranked among the top-five oil analysts in the Reuters and Greenwich Associates polls in 1999 and 2000. He was named to the Institutional Investor All-America Research Team in 1993, 1994, and 1995. Mr. Mahedy began his career as a senior auditor with Peat Marwick Main & Co.

Alex Shabshis

Director of Quantitative Analysis

Alex Shabshis is the Director of Quantitative Strategy for Sanders Capital, LLC. He previously served as Co-Head of Product Development at the Alternative Investments unit of AllianceBernstein L.P. (2007-2009).

Prior to that position, Mr. Shabshis was a senior quantitative research analyst at AllianceBernstein L.P. (2000-2006) and Sanford C. Bernstein & Co., Inc. (1995-2000), leading and contributing to the development of forecasting models and multi-asset portfolio construction techniques for a wide spectrum of asset classes, including global equities, currencies, commodities, and fixed income. Previously, Mr. Shabshis was a quantitative analyst at Sanford C. Bernstein & Co., Inc. (1992-1994). He began his career at Sanford C. Bernstein & Co., Inc. in 1988, shortly after graduating from The Cooper Union.

Frank D. Speno

Director of Marketing & Client Service

Mr. Frank D. Speno is the Director of Marketing & Client Service for Sanders Capital, LLC. Prior to joining Sanders Capital in 2009, Mr. Speno held several senior roles in distribution and product management at AllianceBernstein L.P. in the years 2000 - 2009. Mr. Speno’s roles at AllianceBernstein included: Executive VP of AllianceBernstein’s All Asset Deep Value Fund; Executive VP of Global Consultant Relations; Executive VP of Global Retail Distribution; Senior VP of Institutional Marketing; and Product Manager for Bernstein Value Equity. He began his career at Sanford C. Bernstein & Co., Inc. in 1995 as a Director of Consultant Relations and was promoted to manage the firm's West coast client and business development efforts. Prior to joining Sanford C. Bernstein & Co., Inc., Mr. Speno spent five years as a Regional Director for ANB Investment Management in Chicago, served as a Marketing Director for Quaker Capital Management and worked with E.F. Hutton & Co. in its Capital Markets program.

Jean Margo Reid

General Counsel & Chief Compliance Officer

Jean Margo Reid is the General Counsel and Chief Compliance Officer of Sanders Capital, LLC. She was an independent director of the BlackRock Inc. Equity-Bond Funds from 2006-2009, and an independent director of the Merrill Lynch Investment Management Funds, Cluster B, from 2004-2006.

Prior to that, Ms. Reid served as General Counsel, Secretary and Director (1997-2000), Associate General Counsel (1992-1996), and Attorney (1988-1992) of Sanford C. Bernstein & Co., Inc.

Before joining Bernstein, she taught Business Law at New York University’s School of Business as an Assistant Professor of Business Law (1981-1988).

Michael T. Borgia

CFO & Head of Operations

Michael T. Borgia is the CFO and Head of Operations for Sanders Capital, LLC. Previously from 2001-2008, he was Co-Head of Global Operations for AllianceBernstein L.P.

Prior to that position, he served as the Head of Operations (1992-2001), Head of Investment Management Operations (1982-1992), and Operations Manager (1978-1982) for Sanford C. Bernstein & Co., Inc. He began his career as a Senior Accountant at Seidman & Seidman.

Mr. Borgia currently serves on the board of the Portledge School as Treasurer and a member of their Executive Committee. He also serves on the board of the Boys & Girls Club of Oyster Bay-East Norwich.

Avinash Agarwal

Research Analyst

Avinash Agarwal is a Research Analyst with Sanders Capital, LLC. Prior to joining Sanders Capital, Mr. Agarwal was an equity research analyst at AllianceBernstein L.P. (2006-2012), whose coverage area included the global automotive industry as well as the industrial and consumer sectors.

Before joining Bernstein, Mr. Agarwal was a Principal at Booz & Co. (2004-2005) where he provided management consulting services to clients across a broad range of industries. Prior to that position, he held various roles of increasing responsibility at Booz & Co. from 2000-2004. He began his career as a consultant in Booz Allen Hamilton's Mumbai offices (1998-2000) where he worked on consulting engagements for clients in both private and public sectors.

Tali Asias

Research Analyst

Tali Asias is a Research Analyst with Sanders Capital, LLC since 2011. Prior to joining Sanders Capital, Ms. Asias was an Associate in the Restructuring Advisory division at Citadel Investment Group (2009).

From 2004-2007, Ms. Asias was an Investment Banking Analyst within the Financial Sponsors Group at Wachovia Securities, where she executed M&A's and capital-raising transactions on behalf of private equity clients. Prior to that, Ms. Asias was a Consular Services Officer at the General Consulate of Israel (2000-2003). Ms. Asias also held the post of Sergeant in the Ministry of Defense, a unit of the Israel Defense Forces from 1997-1999.

Di Cai

Research Analyst

Di Cai is a Research Analyst with Sanders Capital, LLC. Prior to joining Sanders Capital, Dr. Cai was a Summer Associate with Kleiner Perkins (2012), where she was part of the China team focused on healthcare investment. She subsequently worked as a Sumer Associate with The Carlyle Group in their Asia Growth Equity Team in Beijing (2012).

From 2009-2011, Dr. Cai worked as a Senior Scientist and Lab Manager at The Scripps Research Institute where she led a team to investigate personalized medicine in lung cancer treatment. From 2005-2009, Dr. Cai was a Research Scientist at the University of Texas Southwestern Medical Center where she discovered a novel biomarker for lung cancer prognosis. Prior to her scientific career, Dr. Cai was a presenter on the Tianjin TV Network, the fourth largest TV Network in China, co-hosting a bilingual talk show to promote English learning and cultural exchange.

Brixen Dillman

Research Analyst

Brix Dillman is a Research Analyst with Sanders Capital, LLC. Prior to joining Sanders Capital, Mr. Dillman was a Valuation Consultant at The World Bank (2008-2009), where he was responsible for risk management of foreign currency and interest rate derivatives. Prior to joining The World Bank, Mr. Dillman was Fleet Portfolio Manager at GATX Corporation (2006-2008), where he developed and implemented financial models covering four areas: railcar investment and lease pricing, commodity supply-demand forecasts, strategic equity investments and direct asset management of a portfolio generating $90 million in revenue.

From 2004-2005, Mr. Dillman was an Investment Analyst at Regis Management Company, LLC (CA) where he sourced, screened and monitored investments for a private family asset management firm. Prior to that, Mr. Dillman was a Technology M&A Analyst at Credit Suisse (2002), where he analyzed mergers for global technology manufacturing and service leaders.

He is a CFA® charterholder.

Debbie Lau

Research Analyst

Debbie Lau is a Research Analyst with Sanders Capital, LLC. Prior to joining Sanders Capital, Ms. Lau was with Chilton Investment Company where she was an Equity Research Analyst (2007-2011) focusing on long-short equity investments within the U.S. construction materials, homebuilding, waste management, specialty chemicals and consumer products sectors. Prior to attending business school, Ms. Lau was a Credit Research Associate covering Financial Institutions with Fidelity Investments in the U.S. Fixed Income Division (2001-2003) and Fidelity International in Hong Kong (2003-2005). From 1999-2001, Ms. Lau was an Analyst with FleetBoston Financial in the Corporate Strategy and Development Group.

She is a CFA® charterholder.

Monali Jhaveri

Research Analyst

Monali Jhaveri is a Research Analyst with Sanders Capital, LLC. Prior to joining Sanders Capital, Ms. Jhaveri was with McKinsey & Company as a Senior Associate (2009) and a Business Analyst (2005-2007).

While at McKinsey & Co., she focused on growth strategy and M&A initiatives on behalf of Indian, Brazilian and UK-based companies in the financial services, retail, and public sectors. Prior to McKinsey and Co., Ms. Jhaveri was a Financial Analyst at Morgan Stanley in the Firm Strategy & Execution Group (2003-2005) where she evaluated M&A opportunities and developed strategic initiatives across the company's business units.

Rennick Palley

Research Associate

Rennick Palley is a Research Associate with Sanders Capital, LLC. Mr. Palley recently graduated with his master’s in Finance from MIT Sloan School of Management. He holds dual Bachelors of Science in Mechanical Engineering and Mathematics from Southern Methodist University.

Mr. Palley performed internships at various private and public equity firms during his college and graduate school years. These included the development of quantitative public equity selection algorithms (Cadence Capital Management LLC), long short public equity analysis (Highland Capital Management LP), quantitative portfolio management research (Research Affiliates LLC), and private equity investment due diligence and analysis (Satori Capital LLC).

Steven Sanders

Research Analyst

Steven Sanders is a Research Analyst with Sanders Capital, LLC. He is also the founder and President of Tactual Labs Co., a fabless semiconductor company. Mr. Sanders has co-authored 23 patents in input and interaction technologies. He has also published pioneering academic research in the field of touch input latency in conjunction with Microsoft Research and the University of Toronto. Prior to joining Sanders Capital, Mr. Sanders was a Strategist & Transition Manager with Bank of America Merrill's Global Wealth Management Division (2008-2009). Prior to that, Mr. Sanders served as a Senior Specialist on Merrill Lynch's Global Wealth Management Strategy & Business Development team (2006-2008) and on the Sell-Side Research Strategy team (2008) as an internal consultant and principal banker for the firm.

Frank M. Castellucci

Head of Trading

Frank M. Castellucci is the Head of Trading for Sanders Capital, LLC. Previously from 2008-2009, he was the Assistant Vice President of Client Reporting for AlianceBernstein L.P.

Prior to that position, Mr. Castellucci served as the Manager of High-Net-Worth Reporting (2007-2008), Manager of Global Reporting (2005-2008), and Global Reporting Analyst (2004-2005) for Alliance Bernstein L.P.

Christina M. Restivo

Office Manager &
Executive Assistant to the CEO

Kapa Benjamin

Assistant Office Manager &
Administrative Assistant