Boston Partners: A Deep Dive into a Value Investing Giant
Boston Partners is a globally recognized investment management firm with a singular focus on value investing. The firm has built a strong reputation for its disciplined, research-driven approach to stock selection, which has been its hallmark for decades. For investors seeking a manager with a consistent philosophy and a long-term perspective, Boston Partners presents a compelling option. This page will provide an in-depth look at Boston Partners, from its history and investment philosophy to its diverse range of products and services.
A Legacy of Value: Company History and Milestones
Boston Partners has a rich history that dates back to 1970 through its predecessor companies. The firm as it is known today was founded in 1995 when a group of 34 investment professionals came together with a shared belief in the power of value investing. Among the founding partners was Joseph F. Feeney, Jr., who currently serves as the firm’s Chief Executive Officer and Chief Investment Officer.
A significant milestone in the firm’s history is its acquisition by ORIX Corporation, a Tokyo-based international financial services company. This partnership has provided Boston Partners with a stable and supportive parent company, allowing it to maintain its investment autonomy while benefiting from the resources of a global financial leader.
Over the years, Boston Partners has expanded its reach and capabilities. The firm established a division called Weiss Peck & Greer (“WPG Partners”), which specializes in small-cap and micro-cap value equity strategies. To cater to the needs of high-net-worth individuals, the firm created Boston Partners Private Wealth (“BPPW”). Furthermore, Boston Partners has a limited-purpose broker-dealer, Boston Partners Securities L.L.C., and a non-depository trust company, Boston Partners Trust Company (“BPTC”). The firm also has a UK-based subsidiary, Boston Partners (UK) Limited, to serve its European clients.
The Three Circles: A Disciplined Investment Philosophy
At the heart of Boston Partners’ success is its unwavering commitment to a single investment philosophy, which it calls the “Three Circles” approach. This philosophy is applied to every strategy the firm manages, regardless of market capitalization or geography. The Three Circles approach is based on three fundamental tenets:
Low Valuation: The firm believes that stocks with low valuations have the potential to outperform those with high valuations over the long term. This principle guides the firm’s search for companies that are trading at a discount to their intrinsic value.
Strong Fundamentals: Boston Partners seeks out companies with strong business fundamentals, such as high and sustainable returns on invested capital. This focus on quality helps to mitigate risk and identify businesses with a durable competitive advantage.
Positive Business Momentum: The firm looks for companies that are exhibiting positive business momentum, such as rising earnings estimates. This “catalyst” for price appreciation is a key component of the firm’s investment process.
This disciplined, three-pronged approach allows Boston Partners to construct well-diversified portfolios of stocks that it believes are well-positioned to deliver attractive returns over time. The firm’s investment process is a blend of quantitative screening and bottom-up fundamental analysis, with a team of experienced portfolio managers and analysts working together to identify the most promising investment opportunities.
A Comprehensive Suite of Investment Solutions
Boston Partners offers a wide range of investment strategies and vehicles to meet the diverse needs of its clients. These offerings span across various asset classes and are available to institutional investors, high-net-worth individuals, and retail investors.
Institutional Strategies
Boston Partners provides a variety of institutional strategies, each managed with the firm’s signature Three Circles investment philosophy. These strategies include:
U.S. Equity: The firm offers a range of U.S. equity strategies, including Large Cap Value, Mid Cap Value, and Small Cap Value.
Global and Non-U.S. Equity: For investors seeking international exposure, Boston Partners provides Global Equity and International Equity strategies.
Long/Short Equity: The firm’s Long/Short Equity strategies are designed to generate returns with lower volatility than the broader equity market.
WPG Partners: Through its WPG Partners division, the firm offers specialized Small Cap Value and Micro Cap Opportunities strategies.
Mutual Funds and ETFs
Boston Partners makes its investment expertise accessible to a broader audience through a family of mutual funds. The firm acts as the investment adviser to the Boston Partners Mutual Funds, which include a variety of strategies such as the Boston Partners All Cap Value Fund, the Boston Partners Small Cap Value Fund II, and the Boston Partners Long/Short Equity Fund. The firm also offers funds through its WPG Partners division.
In addition to its own mutual funds, Boston Partners serves as a sub-adviser for a number of John Hancock and Robeco funds, allowing investors to access the firm’s strategies through these well-known fund families.
Separately Managed Accounts (SMAs)
For institutional clients and high-net-worth individuals who prefer a more customized approach, Boston Partners offers Separately Managed Accounts (SMAs). SMAs allow for greater flexibility in terms of investment guidelines and tax management. The firm also participates in various wrap fee programs, where its investment management services are bundled with other services for a single fee. Boston Partners works with a number of wrap program sponsors, including BNY Mellon, Charles Schwab, Merrill Lynch, and Morgan Stanley.
Collective Investment Trusts (CITs)
Boston Partners offers Collective Investment Trusts (CITs) through its subsidiary, Boston Partners Trust Company. CITs are a popular investment vehicle for qualified retirement plans, offering a cost-effective way to access the firm’s investment strategies.
UCITS and Other Vehicles
The firm also offers its strategies in UCITS (Undertakings for Collective Investment in Transferable Securities) funds for European investors, as well as Canadian pooled funds.
By the Numbers: A Look at Boston Partners' Scale
Boston Partners is a significant player in the investment management industry. Here are some key metrics that illustrate the firm’s scale and reach:
Assets Under Management (AUM): As of December 31, 2023, Boston Partners managed approximately $82.196 billion on a discretionary basis and $7.492 billion on a non-discretionary basis, for a total of roughly $89.7 billion in AUM.
Number of Employees: Boston Partners has a team of approximately 174 employees (as of June 2024), including a deep bench of experienced investment professionals.
Number of Clients: The firm serves a diverse client base that includes institutional investors such as insurance companies, corporations, and pension plans, as well as high-net-worth individuals.
Global Presence: Boston Partners has offices in key financial centers across the United States, including Boston (HQ), New York, San Francisco (Greenbrae), and Los Angeles, as well as an international office in London.
The Engine Room: Technology and Infrastructure
To support its sophisticated investment process, Boston Partners utilizes a robust technology and infrastructure platform.
Portfolio Management Systems: The firm employs a state-of-the-art order management system to ensure efficient and accurate trade execution.
Risk Management Tools: Risk management is a cornerstone of Boston Partners’ approach. The firm uses proprietary quantitative tools to monitor portfolio characteristics and identify potential risks. A dedicated Trade Management Oversight Committee provides an additional layer of risk oversight.
Data Analytics: Boston Partners’ investment process begins with quantitative screening, which involves the use of sophisticated data analytics to identify potential investment candidates. This data-driven approach allows the firm to cast a wide net and efficiently identify stocks that meet its stringent investment criteria.
Boston Partners is committed to leveraging technology to enhance its investment process and deliver better outcomes for its clients. The firm’s ongoing investment in technology and infrastructure ensures that it remains at the forefront of the investment management industry.
With a time-tested investment philosophy, a comprehensive suite of investment solutions, and a team of experienced professionals, Boston Partners is a formidable force in the world of value investing. The firm’s unwavering commitment to its Three Circles approach has allowed it to navigate a variety of market environments and deliver strong results for its clients over the long term. For investors seeking a partner with a deep understanding of value, a disciplined process, and a global perspective, Boston Partners is a name to remember.
Profile Structure
Name: Boston Partners
Industry: Investment Management
Founded: 1995
HQ: One Beacon Street, 30th Floor, Boston, MA 02108 USA
CEO: Joseph F. Feeney, Jr.
AUM: Approximately $89.7 billion (as of December 31, 2023)
Employees: Approximately 174
Client Segments: Institutional investors, high-net-worth individuals, retail investors
Specialization: Value Investing (utilizing their “Three Circles” philosophy)
Website: bostonpartners.com
LinkedIn: linkedin.com/company/boston-partners-global-investors/
Boston Partners Leadership & Teams
Joseph F. Feeney, Jr. – Chief Executive Officer and Co-Chief Investment Officer
Greg Varner – Chief Financial Officer
Mark S. Kuzminskas – Chief Operating Officer
William Connolly – Head of Global Distribution
William G. Butterly, III – General Counsel and Director of Sustainability and Engagement
Davis B. Clayson Jr. – Chief Revenue Officer
Christopher K. Hart – Portfolio Manager
David T. Cohen – Portfolio Manager
George Gumpert – Senior Portfolio Manager
Joshua Jones – Portfolio Manager
Joshua White – Portfolio Manager and Co-Chief Investment Officer
Tim Collard – Portfolio Manager
Christopher Bowker – Director of Equity Trading
Stephen Ferrara – Equity Trader
Brad Brezinski – Head of International Investor Relations & Distribution
Connor Watson – Public & Taft-Hartley Funds
James F. Dwinell – Head of Product and Relationship Management
Kathryn Y. Burke – Director of Client Service
Paul D. Heathwood – Head of North American Investor Relations & Distribution
Timothy Strakosch – Public & Taft-Hartley Funds
William J. Supple – Public & Taft-Hartley Funds
William Pawson – International Investor Relations and Distribution