Cush Capital Management wishes upon a Morningstar rating

Cush Capital Management is small and relatively new to the market, but it has something in common with American Century Investments: a four-star rating from Morningstar in the Large Cap Value category.

Vern Cushenbery founded Overland Park-based Cush Capital in October 2007, when the Dow Jones industrial average was at 14,000. Cushenbery said that the three years that followed were the most stressful of his life but that the recession turned out to be a blessing.

“It’s given us the opportunity to shine, relative to our peers,” he said. “In a bear market, our Large Cap Value strategy put more focus on the downside risk. It really stood out.”

The strategy is simple: Find investments in core markets where a company’s underlying book value is higher than the price at which the stock is trading. So, for example, if a company that has a liquidation value of $13 a share but is trading at $10 a share, it has less downside risk.

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