We use a broad array of tools to work towards two basic yet critical objectives: strong risk-adjusted returns and preservation of capital. To meet these goals we employ a core investment strategy adapted to client needs. For some this translates into optimized growth, for others maximized income, conditioned by individual investment goals, time horizon, tax situation, and risk tolerance. We believe that taking a long time horizon provides us with a strategic advantage: we position portfolios to benefit from major trends rather than short term market movements.
We screen a broad universe of equities to find companies that should deliver strong long term price and dividend appreciation. Some of the attributes we look for include a strong balance sheet, sound management, competitive products, and attractive valuation. Our search results in an active list of about 100 companies from which we create a portfolio of 40 to 50 names that are continually monitored and evaluated. Our goal is constant tracking but selective trading: so stock holdings might shift only 10% to 20% in a given year.
We believe that over the coming years the US will represent a shrinking fraction of the world economy. We position client accounts for this by holding non-US stock positions, holding positions in US companies with major revenues abroad, and through investment in regional indices to capture growth outside this country.
Fixed Income Securities:
We actively manage client bond holdings to produce maximum income within specific risk parameters by working with the variables of duration, credit risk, and return. We include tax-free yield for high-bracket clients, sell positions at times to capture market premiums, and work with outside managers and their bond funds to achieve diversified corporate bond yield. As with other assets, we seek to find stable fixed income positions to avoid frequent trading, but will act quickly if underlying factors shift.
The forces of the economy, needs of the client, changes in consumer demand, and business innovation along with many other factors result in constant movement in the values of assets in each portfolio. We continually evaluate these factors looking for validation of our strategies or indications of the need for change. We monitor portfolios and intervene to rebalance, raise funds, or adjust holdings as the situation requires.
Socially Responsible Investing:
Clients may wish to invest only in the stock of companies meeting specific criteria for employment practices, labor relations, environmental impacts, and other matters. We support this approach by tailoring portfolio holdings to match these concerns. We can provide information on specific companies and assist in creating a portfolio that reflects the client’s beliefs.