Vaughan Nelson Investment Management

Vaughan Nelson manages high-conviction, high active share portfolios – all of which follow the same value-oriented investment approach and belief that temporary inefficiencies and time arbitrage create long-term opportunities. The firm manages equity strategies across market capitalizations and domestic fixed income – offered in a variety of investment types, including mutual funds, ETFs, separately managed accounts, and collective trusts.

“We believe investing is about offsetting future obligations, not just having market exposure.”

– Chris D. Wallis, CFA®, CEO, CIO and Senior Portfolio Manager

Founded

1970

Headquartered

Houston, TX, USA

Expertise

Actively managed us, international and emerging market equity and fixed income

AUM

USD 17.8B as of June 30, 2024

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Focus on targeted return.

Seek investments which the team believes have the ability to generate a double-digit return over three years.

Trading time for value.

A longer time horizon allows the team to exploit short-term volatility and poor price discovery.

Investment process

Undervalued earnings growth

Future redeployment of capital is not reflected in current valuation.

Undervalued asset

Asset price at a significant discount. Identified catalyst to close valuation gap.

Undervalued dividend yield

High secure dividend yield, typically 10% or higher.

Risk management

The investment team focuses beyond sector and factor exposure to gain a view of a portfolio’s positioning and biases. Their factor-based risk analysis is used when constructing portfolios to better understand what active positions are in those selections and any unintentional exposures that may come through when constructing a bottom-up portfolio.

article

Fixed income

Where does fixed income go from here?

Three veteran fixed income managers answer questions on investors’ minds, especially after the Fed’s interest rate cut.

podcast

Equities

How Aziz Hamzaogullari and his team generate long-term alpha

Aziz Hamzaogullari from Loomis Sayles discusses his team’s alpha thesis and AI, sell discipline, and the US election.

article

Equities

Caution amidst a concentrated equity market and contentious elections

Although the US equity market is very expensive and its first-half performance very concentrated, it still offers opportunities for a value and conviction-based investor like Harris Associates, who is convinced of the value of its investment process and able to avoid the political uncertainties that can affect the markets.

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Learn more about our affiliated investment managers or a specific investment strategy.

Assets under management (“AUM”) as of June 30, 2024. AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.

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