Atalanta Sosnoff Capital: Strategies & Firm Profile
Atalanta Sosnoff Capital: A Deep Dive into a High-Quality Growth-Oriented Investment Manager
In the ever-evolving world of investment management, certain firms stand out for their enduring philosophies, disciplined processes, and unwavering commitment to client success. Atalanta Sosnoff Capital is one such firm. With a history spanning over four decades, this New York-based investment advisor has carved a niche for itself with its distinct focus on identifying companies poised for accelerating earnings growth.
This in-depth article explores every facet of Atalanta Sosnoff Capital, from its rich history and core investment strategies to its leadership team and corporate ethos. Whether you’re a high-net-worth individual, an institutional investor, or simply someone interested in the dynamics of the investment world, this comprehensive overview will provide you with a detailed understanding of what makes Atalanta Sosnoff Capital a noteworthy player in the financial landscape.
A Legacy of Excellence: The History of Atalanta Sosnoff Capital
Atalanta Sosnoff Capital’s journey began in the early 1980s, with sources indicating its founding in either 1981 or 1986. While the exact year may be subject to some variation in reporting, the firm’s core identity has remained consistent. From its inception, Atalanta Sosnoff has been an SEC-registered investment advisor dedicated to achieving outperformance against relevant benchmarks and peers, regardless of the prevailing market environment.
The firm was founded by Martin Sosnoff, a Chartered Financial Analyst (CFA) with a storied career in the investment world. Before establishing his own firm, Mr. Sosnoff was the chairman of Atalanta Capital Corporation, a research analyst at E.F. Hutton, and director of research at Starwood Corporation. A respected voice in the industry, he has authored three books on money management and has been a columnist for Forbes.com. His vision and investment acumen laid the foundation for the firm’s enduring success.
Over the years, Atalanta Sosnoff has grown into a well-respected institution, serving a diverse client base that includes institutional investors (such as public, endowment, and foundation funds), religious and charitable organizations, and high-net-worth individuals. The firm has also established a significant presence in the Taft-Hartley funds arena and offers its services through broker-sponsored wrap programs at some of the world’s largest money management firms.
A Client-Centric Approach: The Services of Atalanta Sosnoff Capital
Atalanta Sosnoff Capital offers a range of investment advisory services tailored to the specific needs of its clients. The firm prides itself on its dedicated client service, transparency, and high ethical standards. Here’s a closer look at the services it provides:
Separately Managed Accounts (SMAs)
The cornerstone of Atalanta Sosnoff’s service offering is its separately managed accounts (SMAs). Unlike mutual funds, where investors’ assets are pooled, SMAs provide each client with a personalized portfolio. This allows for greater transparency, as clients can see the individual securities they own, and greater control over their investments. The minimum account size for an individual account is typically $100,000, while for an institutional account, it is $500,000, although these minimums may be waived for certain relationships.
Institutional Client Services
Atalanta Sosnoff has a long and successful history of serving institutional clients. The firm understands the unique needs and challenges of these large investors and provides them with customized investment solutions. This includes a deep understanding of the specific requirements of Taft-Hartley plans, which are multi-employer pension plans established through collective bargaining agreements. The firm has a dedicated team focused on serving the needs of these plans.
Advisory Services for Broker-Dealers
Atalanta Sosnoff partners with major broker-dealers and investment advisory firms, offering its Large Cap Equity and Large Cap Balanced separately managed account products through their platforms. This allows a wider range of investors to access the firm’s investment expertise through their existing financial advisors. The firm has an experienced marketing team that provides support and training to financial advisors to help them grow their businesses.
The Art of Investing: Atalanta Sosnoff's Investment Strategies
Atalanta Sosnoff’s investment approach is what truly sets it apart. The firm’s philosophy is centered on the concept of “earnings acceleration,” a refinement of traditional growth investing. The goal is to identify and invest in companies that are entering a period of accelerating earnings growth, benefiting not only from the growth rate itself but also from the potential for multiple expansion that such acceleration can bring.
The firm employs two primary investment strategies:
Equity Strategy: The Pursuit of Earnings Acceleration
Atalanta Sosnoff’s equity strategy is the bedrock of its investment philosophy. The firm believes that identifying companies with accelerating earnings is a powerful and reliable long-term indicator of relative stock returns. This approach is built on a set of distinguishing characteristics:
Style: A focus on earnings acceleration, which can be found in both growth and value stocks. The key is the presence of a catalyst that can propel earnings forward.
Sustainability: The firm’s experienced investment professionals have identified patterns of events that are critical to earnings acceleration. These key drivers of growth are identified through a repeatable, three-step process.
Pragmatism: The firm builds concentrated portfolios of high-conviction ideas, believing that outperformance requires a willingness to be different from the benchmark.
Culture: The entire firm is dedicated to the earnings acceleration strategy. A flat organizational structure allows for a collaborative approach and high-touch client service.
The equity investment process is a rigorous and disciplined one:
Identifying Catalysts: The first step is to identify catalysts that could lead to an increase in a company’s growth rate. These can include new products, management changes, supply/demand imbalances, restructurings, or regulatory changes.
Security Analysis: Once a potential catalyst is identified, the team conducts in-depth security analysis. This involves building a detailed earnings model and gaining an independent conviction that the growth rate will indeed improve. This requires primary research that goes beyond the expectations of Wall Street analysts.
Valuation Discipline: The final step is to apply a valuation discipline to ensure that the potential for earnings growth is not already priced into the stock. The team compares the stock’s current valuation to its historical levels, its industry peers, and the overall market.
The buy/sell discipline is equally important. The firm initiates a small “probe” position of 1% and then increases it to a full weight of 3-5% as its conviction grows. Stocks are sold when they reach their price targets, when the thesis for earnings acceleration deteriorates, or to make room for a more compelling opportunity.
Fixed Income Strategy: A Focus on Income and Relative Value
Atalanta Sosnoff’s fixed income strategy is designed to be both performance-enhancing and risk-reducing. The firm is an active fixed income manager with the dual goals of maximizing return and preserving capital. The strategy is built on three pillars:
Duration Management: The firm takes a view on the direction of interest rates and adjusts the portfolio’s duration accordingly. In an effort to preserve capital, the firm will move to the shortest allowable duration when appropriate.
Relative Valuation: The team performs a relative valuation analysis across different sectors, maturities, and credit qualities to identify undervalued securities.
Sector Selection: The portfolio is constructed using a mix of U.S. government securities, agency securities, mortgages, and corporate bonds.
The fixed income process is as follows:
Benchmark Decomposition: The process begins by decomposing a client-selected benchmark to understand its characteristics.
Relative Valuation Analysis: The team then conducts a relative valuation analysis to identify areas of potential investment that are undervalued relative to the benchmark or the market as a whole.
Top-Down Macro View: This analysis is combined with the top-down geopolitical and macroeconomic output of the firm’s Investment Policy Committee. This helps in determining the portfolio’s duration, sector allocation, and overall quality.
Fundamental Analysis: Fundamental analysis is the primary driver of security selection. The firm’s equity analysts’ earnings forecasts may also be used for certain issues.
The Power of People: The Atalanta Sosnoff Leadership Team
Atalanta Sosnoff’s success is driven by its team of experienced and dedicated investment professionals. The firm’s leadership team brings a wealth of knowledge and expertise to the table. Here are some of the key members:
Craig Steinberg: As President and Chief Investment Officer, Mr. Steinberg is at the helm of the firm’s investment strategy. He has been with the firm since 1985 and has been a portfolio manager since 1988. He holds a BSE degree from the Wharton School of the University of Pennsylvania.
Robert (Bob) Ruland, CFA: As Co-Chief Investment Officer of Equities and Director of Research, Mr. Ruland plays a crucial role in the firm’s equity strategy. He joined the firm in 2002 and is a Chartered Financial Analyst.
Matthew (Matt) Ward: As Co-Chief Investment Officer of Equities, Mr. Ward is a key member of the equity investment team. He joined the firm in 2018 and has extensive experience in the investment industry. He is also a Chartered Financial Analyst.
Joseph V. Sileo, Jr., CFA: As Managing Director and Senior Fixed Income Portfolio Manager, Mr. Sileo is a leader in the firm’s fixed income strategy. He has been with the firm since 2004 and is a Chartered Financial Analyst.
Jerry Thunelius: As Managing Director and Senior Fixed Income Portfolio Manager, Mr. Thunelius brings over 30 years of experience to the fixed income team. He has worked with major publications like Barron’s and Forbes and has appeared on Bloomberg TV.
Michael R. Kuchler: As Chief Operating Officer, Chief Financial Officer, and Chief Compliance Officer, Mr. Kuchler is responsible for the firm’s operational and compliance functions. He joined the firm in 2022 and has a strong background in finance and compliance.
AUM and a Commitment to Growth
Atalanta Sosnoff Capital has seen significant growth in its assets under management (AUM). As of December 31, 2024, the firm had $8.5 billion in assets under management. This is a testament to the firm’s ability to attract and retain clients through its consistent investment performance and dedicated client service. It is important to note that this figure includes assets managed under certain unified asset management programs. Another source reports a Form 13F Information Table Value Total of over $4.5 billion.
A Culture of Responsibility
Atalanta Sosnoff Capital operates with a strong sense of responsibility to its clients and the broader community. This is reflected in its corporate governance practices and its commitment to business continuity.
Proxy Voting
The firm takes its fiduciary responsibilities very seriously and believes that the right to vote proxies is a significant asset in its clients’ accounts. Atalanta Sosnoff has a detailed proxy voting policy and procedure in place to ensure that all proxies are voted in the best interests of its clients. The firm gives substantial weight to the recommendations of a company’s management but will consider each issue on its own merits.
Business Continuity Plan
Atalanta Sosnoff has a robust business continuity plan in place to ensure that it can continue to serve its clients in the event of a significant business disruption. The firm has a disaster recovery and business continuity plan that utilizes a cloud-based service for continuous replication of critical information and servers. This ensures that the firm’s books and records are protected and that it can continue to conduct client transactions remotely if necessary.
Awards and Recognition
While specific financial industry awards are not widely publicized, Atalanta Sosnoff Capital’s long and successful track record is a testament to its excellence. The firm’s involvement in events like the Peggy Browning Virtual Awards Program demonstrates its commitment to the community and its support for important causes.
A Look Ahead: The Future of Atalanta Sosnoff Capital
As Atalanta Sosnoff Capital looks to the future, it remains firmly committed to the principles that have guided it for over four decades. The firm’s focus on earnings acceleration, its disciplined investment process, and its client-centric approach are timeless principles that are likely to continue to serve it well in the years to come.
With a strong leadership team, a dedicated team of investment professionals, and a growing base of satisfied clients, Atalanta Sosnoff Capital is well-positioned to continue its legacy of excellence in the investment management industry. Whether you are an individual investor looking for a high-quality growth-oriented manager or an institutional investor seeking a trusted partner, Atalanta Sosnoff Capital is a firm that is worthy of your consideration.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. All financial figures and information are based on publicly available data and are subject to change.
Atalanta Sosnoff Capital Leadership & Teams
Robert (Bob) Ruland – Co-Chief Investment Officer of Equities/Director of Research
Matthew Ward – Co-Chief Investment Officer of Equities
Brian Turner – Senior Vice President / Senior Research Analyst
Tonianne Russo – Assistant Vice President
John Carmody – Senior Vice President, Managing Director Advisory Services
Evan Cheng – Senior Vice President Marketing and Client Services
Michael R. Kuchler – Chief Operating Officer, Chief Financial Officer, Chief Compliance
Joseph V. Sileo, Jr. – Managing Director/ Senior Fixed Income Portfolio Manager
Headquarters: 505 5th Avenue, 17th Floor, New York, NY 10017 USA
Phone: 212-867-5000
Number of employees: 11-50
Website: www.atalantasosnoff.com