Founded in 1985 and located in Memphis, Tennessee, NewSouth Capital Management, Inc. is an independently owned investment adviser. Prior to establishing NewSouth, its founding principals, Trow Gillespie and Steve Morrow, worked together for more than five years as investment advisers at another firm focused on institutional clients. Mr. Gillespie and Mr. Morrow each own 30.51% of NewSouth’s stock, and in total, employees own approximately 87% of the company’s shares. We manage assets primarily for institutional and private clients in both taxable and tax-exempt accounts. We offer four concentrated equity strategies, distinguished by market capitalization, available through separately managed accounts and the NewSouth Capital Management Collective Investment Trust (the “CIT”) and its series (each, a “CIT Fund”), which are offered and maintained by their trustee (the “Trustee”). On request, we also offer balanced accounts and fixed income and cash management strategies. Our investment advisory services, strategies, and products are not suitable for the general public or typical retail investors. NewSouth is the investment adviser to and general partner of NewSouth Special Equities, L.P., a private limited partnership (the “Private Fund”), as described in more detail at Item 10, and participates as a sub-adviser in wrap fee programs sponsored by third parties (each a “Wrap Program”).
Our objective is long-term capital appreciation through fundamental, bottom-up research to identify undervalued companies resilient to circumstances over-emphasized by a near-sighted market. Market inefficiency is the central tenet of our philosophy, and fundamental analysis is the basis of our repeatable process.

We believe markets exhibit inefficiency when prices deviate from intrinsic value. We generally limit investments to companies with fundamental traits that we refer to as durable sources of return. These include a company’s resiliency, compounding potential and leadership attributes and relate directly to business quality and our estimate of intrinsic value. From time to time, the market misprices these traits, thus creating investment opportunity. The difference between our estimate of intrinsic value and price is what we refer to as the “margin of safety.” We require a meaningful “margin of safety” for each investment meeting our quality threshold. We encounter investment opportunities along a continuum of quality. The highest quality businesses are associated with lower risk, and thus we demand a greater “margin of safety” to invest in businesses with more risk. Our “margin of safety” discipline does not ensure protection from the loss of capital.
We believe our competitive advantage comes from our investment philosophy and process, independent employee ownership, highly experienced investment team, concentrated portfolio construction, and “margin of safety” discipline. Our people are the foundation of our value proposition and the source of our stability. Our leadership, research team, client relations and operations professionals collaborate to support our clients’ investment objectives. We work with each client to determine a set of investment objectives tailored to the client’s needs. Under certain circumstances, we accept clearly defined client restrictions on investing in certain types of securities. As of March 31, 2023, the amount of client assets managed was $2,343,800,000.