The Cambiar philosophy seeks to identify valuation disconnects in the marketplace; where companies are trading at an attractive valuation relative to their normalized earnings power. Despite an increasing trend towards passive management and inferred belief in efficient markets, Cambiar continues to believe that stocks do incur dislocations; the key is to understanding the cause for the disconnect and if the issues are due to transitory events or more secular in nature.
Cambiar attempts to add value through active management â€“ we believe that one must look different than the index in order to outperform. All portfolio decisions are based on our in-house research approach; the Cambiar investment team is focused on understanding where value is eroding and accreting within their assigned sectors, with the goal to allocate capital to the latter. This bottom-up approach will often result in sector and individual holdings that differ from the underlying index.