The company is deploying or has the potential to deploy its cash in ways that benefit its shareholders
“We believe investors want performance that is consistently good rather than occasionally great”
Veteran Portfolio managers Darren Jaroch, CFA, and Lauren DeMore, CFA
Investing for consistency in all markets
The Putnam Large Cap value team looks beyond traditional value metrics to find opportunities across the value universe.
Relative value matters
The managers put emphasis on relative value - how a stock measures up versus its own history as well as relative to its industry or sector peers. Analyzing a stock’s valuation relative to its sector rather than the overall market provides a differentiated view of opportunities.
Defining value daily
The Russell 1000 Value Index is rebalanced once a year, when weightings are shifted and stocks may be added or removed. Over the course of 12 months, equity valuations and company fundamentals can change considerably. This is why Putnam Large Cap Value team analyzes and defines the value universe everyday.
The fund has consistency ranked in the top quartile of its peer group
Morningstar percentile rankings for rolling 5-year periods
Source: Morningstar®, 3/31/2025. Morningstar rankings for class Y shares are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Morningstar. Morningstar rankings may differ significantly from Morningstar’s risk-adjusted star ratings. Past performance is not indicative of future results. Putnam Large Cap Value Fund ranked 28% (306/1158), 2% (17/1092), 10% (99/1030), and 7% (32/808) for the 1-, 3-, 5-, and 10-year periods in the Large Value Category, respectively, as of 3/31/2025.
A focus on cash flow and value to shareholders
In evaluating a business, the team focuses on cash flows and shareholder yield — how the company is using its cash to benefit shareholders. As value investors, the managers also seek companies that are undergoing substantial positive internal or external change.
Cash flow and capital allocation
Share buybacks
The business has a history of buying back stock or has the potential to implement future repurchase plans
Dividends
Management has shown a willingness to pay dividends and the business generates sufficient cash flow to support and potentially grow the dividend
Investments
The company invests in high capital return projects that can benefit shareholders in the form of return on equity
Portfolio construction grounded in rigorous risk management
The managers believe performance is driven by a combination of stock selection and risk management.
Building a stock-driven portfolio
The managers seek performance that is driven by individual stock selection rather than macroeconomics or style factors, which tend to be more volatile. They use research-intensive approach focused on high-conviction ideas with support from Putnam’s Equity Research team. With their stock-driven approach, they aim to outperform in all markets, including in periods of extreme market declines, market rebounds, and changing interest -rate regimes.
Risk management that aims for out-performance in all markets
Putnam views risk management as a key driver of returns. It is not a separate function; it is a distinct step that occurs at the same time managers are determining allocations and building the portfolio. This risk discipline has helped the fund outperform in a variety of market environments.
Meet the team
Darren A. Jaroch, CFA
Darren is a Portfolio Manager of Putnam’s U.S. Large Cap Value, Non-U.S. Value, and Global Value Equity strategies. Based in the Boston office, he joined Putnam in 1999 and has been in the investment industry since 1996
Lauren DeMore, CFA
Lauren is a Portfolio Manager of Putnam’s U.S. Large Cap Value, Non-U.S. Value, and Global Value Equity strategies. Based in the Boston office, she joined Putnam in 2006 and has been in the investment industry since 2002
Access to deep equity research expertise
The managers are supported by a tenured team of research analysts with expertise across sectors. The team’s hybrid, best-of-both structure encourages debate and collaboration, and generates unique insights.
- Two-thirds of analysts are focused on specific sectors
- One-third of analysts are aligned with specific equity portfolios
- The analysts have years, and in many cases, decades of work experience in the sectors they cover
- Putnam’s research culture prizes collaboration, a diversity of views, continuous formal and informal communication, and active debate
50
years of combined industry experience
24
combined years managing portfolios at Putnam
30+
research analysts with an average of 17 years of experience
Putnam Large Cap Value Fund
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Fund snapshot
Learn about the fund’s relative returns during value/growth regimes, how we strive for consistent alpha generation, key statistics, and Morningstar ratings.
Fund brochure
Learn what differentiates the fund’s approach with this detailed overview, which also highlights the investment team, process, and performance.
Defining value daily
See how the fund has outperformed in every year that the Russell 1000 Value Index had a negative return.