Edgewood Management LLC

Sell Discipline

Edgewood’s philosophy is to act as a long-term and deliberate investor. Therefore, Edgewood's portfolio typically has moderate turnover and long holding periods.

We adhere to a strict sell discipline in which primary coverage of a company is reassigned from the original Portfolio Manager to another member of the Investment Committee when one of the following events occurs:

  • A stock is down relative to industry peers
  • Two consecutive quarters of earnings disappointments
  • A major change in the company or industry fundamentals

Once one of these events occurs, coverage is reassigned and the stock is reassessed. The original analyst stays on the committee as an information resource but does not have a vote on the outcome.

The committee in such cases discusses the new analyst’s findings and decides whether we should take advantage of the decline by instituting one of three actions:

  • Buy more,
  • Sell what we have, or
  • Just hold on to what we have.


If one or more of the following:

  • Stock down relative to industry peers
  • 2 consecutive quarters of earning disappointment
  • Major change in Company or Industry Fundamentals

Reassign & Reassess


  • Buy,
  • Sell or
  • Hold

We use cookies to make your experience of our website better. We need to ask for your consent to set these cookies. Please note that if you keep browsing this website without electing an option, your consent is deemed to be given.

By clicking "I agree" or continuing to browse this website without electing an option, you are also accepting our Privacy Policy.

No Thanks