Fayez Sarofim & Co Profile
Fayez Sarofim & Co. is a private investment manager that is wholly owned by its employees. The company was founded in 1958 in Houston and is still headquartered there. Fayez Sarofim & Co. believes that “long-term stock price appreciation is based on long-term earnings growth” and that large companies can “produce superior growth and market leadership over long periods of time.” The company’s primary clients are individuals, which alone make up over two thirds of its total client base, although it also provides its services to investment companies, high net worth individuals, which makes up the most of its total assets under management and each makes up a quarter of its assets held, pension and profit sharing plans, charities, state and municipal entities, insurance companies, and corporations and other businesses. Fayez Sarofim & Co. conducts its research in house, utilizing a fundamental analysis with both bottom up and top down stock picking approaches to make its investment decisions. The company’s largest investment allocation is in the consumer non-cyclical sector, which along makes up over a quarter of its total assets allocated, and also invests in the energy, financial, services, health care, technology, and utilities sectors, among others, in order of decreasing amount allocated. Some of Fayez Sarofim & Co.’s top holdings include Philip Morris International, Exxon Mobil, Coca Cola, Altria Group, Apple, and Price T. Rowe. The company currently has over $30 billion in total assets under management that is spread across over 5,600 accounts, averaging to over $5.3 billion each, with almost all of these accounts being discretionary accounts. Although its total accounts managed has decreased dramatically from its 15,000 amount five years ago, its total assets under management has almost doubled since its $17 billion amount back in 2010. Fayez Sarofim & Co. has 56 employees with 22 investment advisor representatives. The company offers four investment strategies: Large Capitalization Equity, Global Equity, Core Fixed Income, and Balanced Portfolio, and services as a subadvisor to Dreyfus mutual funds including the Appreciation Fund and Worldwide Growth Fund.