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Our investment approach

Principal Aligned takes a long-term, bottom-up fundamental approach and specializes in the management of large-cap and mid-cap equity portfolios, primarily in the United States. We invest in owner-operator led companies with aligned incentives, while remaining focused on valuation and risk reduction. Our established track record includes a proven history of delivering risk-adjusted excess returns over market cycles.

High-quality businesses with sustainable competitive advantages
 

 

Aligned approach

Explore our featured equity strategies.

To help you effectively balance risk and return, we make available equity strategies that have historically delivered attractive returns.
Blue Chip Equity
Investing in high-quality large-cap companies with owner-operator management teams and sustainable competitive advantages
MidCap Equity
Investing in high-quality mid-cap companies with owner-operator management teams and sustainable competitive advantages.

Our commitment to ESG

When it comes to environmental, social, and governance (ESG) investing, we empower investors by offering choice, confidence, and flexibility.

Quality governance is central to our investment process and one of the primary reasons we invest alongside owner-operator management teams. Our long-term fundamental approach naturally relies on sound ESG principles as we believe competitively advantaged businesses are better able to satisfy stakeholders.

  • Our process involves frequent discussions with former employees, customers, suppliers, etc. for full understanding of the health of the stakeholder ecosystem.

  • We use MSCI’s ESG research to cross-check our own research for potential sources of ESG related risk. However, we believe most ESG data providers’ definition of quality governance is often too simplified and standard formulas do not fit every company’s unique situation, so we do not depend on them.

  • We generally have small-to-zero weight in companies or industries known for heavy environmental costs (e.g., energy, machinery) as they tend to be capital intensive, commoditized businesses, without a competitive advantage.

Get to know our equity investment teams.

Our distinct and highly experienced equity investment teams are committed to delivering consistent investment results.
Principal Dynamic Growth

Specializes in the management of small-, SMID-, and mid-cap U.S. growth equities using a bottom-up, growth-oriented approach to find good companies that are getting stronger and exceeding investor expectations.

Principal Edge

Committed to fundamental analysis and the belief that quality companies make good stocks with the patience and confidence to invest in SMID-, mid-, and large-cap U.S. equities over the long term.

Principal Equities

With experienced resources around the world, combining global insights with local knowledge to deliver a wide range of fundamental and systematic specialized equity investment solutions spanning all regions and market caps.

Principal Origin

Uses a systematic, evidence-based approach to build global equity portfolios focused on companies that exhibit a balance of positive capital management, undervaluation, earnings revisions, and share price trend.

Get the latest insights.

Equities

The Case for Principal Blue Chip Fund

The Principal Blue Chip Fund focuses on investing in companies led by owner-operators. Learn how this approach to investing has helped the Fund's 10-year track record stand out.

Equities

The Owner-Operator Advantage

Owner-operators are executives with large personal ownership stakes in the companies they lead. Learn why Principal Aligned is focused on investing in companies led by owner-operators.

Equities
9 min

Equity market downturn: The path forward

While bear market rallies may be enticing, they are often short lived, and come with underappreciated risks.

Experts
Garrett Roche, CFA, FRM
Global Strategist
Seema Shah
Chief Global Strategist

Past performance does not guarantee future results.

Equity markets are subject to many factors, including economic conditions, government regulations, market sentiment, local and international political events, and environmental and technological issues that may impact return and volatility.

ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group’s process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.

Principal Aligned is an investment team within Principal Global Investors.