Federated Clover | Our Philosophy

Federated Clover employs a traditional value approach to equity investing through bottom up, fundamental analysis combined with rigorous quantitative analysis. We are solely dedicated to value investing, as a time-tested and academically-supported means to seek above-average returns with lower-than-average risk.

Our investment process focuses on the underlying cash flow dynamics of companies, as free cash flow is the source of a company’s business enhancements, dividends, and share repurchases – all of which can drive shareholder returns. Through our free cash flow analysis, we seek to identify securities that are trading below their intrinsic value, and that are poised to undergo fundamental improvement through reasonable and predictable catalysts.

Federated Clover’s investment approach has remained intact since the firm’s origin in 1984. It’s a disciplined and repeatable process that requires patience, a long-term outlook and some contrarian thinking.