Fayez Sarofim & Co.

Investment Strategy

Fayez Sarofim & Co.'s primary strategy centers on large capitalization equities, emphasizing long-term capital appreciation and growing dividend income. Portfolio construction focuses on high-quality, financially sound leaders with expanding global presence, using a bottom-up investment process grounded in fundamental research. Portfolios are typically fully invested, exhibit low turnover, and avoid derivatives, leverage, short selling, and market timing. The firm complements this with a risk-averse fixed income strategy, favoring high quality bonds and low cash reserves. Their process is benchmark-agnostic, rooted in identifying companies with sustainable competitive advantages and earnings growth, and incorporates a macroeconomic overlay for broader portfolio context.