Investment Philosophy

Equities

The essential ingredient in our fundamental approach is a highly disciplined security valuation process that searches for undervalued securities and industrial sectors through our proprietary screening techniques.  We seek those companies and industrial sectors that have a potential catalyst that will cause a revaluation by the market, resulting in a higher prices. This catalyst factor can include product innovation, asset redeployment, new management, economic influences, or even geopolitical factors.

Relative strength is used to identify areas of opportunity in individual securities and industrial sectors, and to aid in the execution process by highlighting entry and exit points.

Portfolios are diversified over a range of companies and industrial sectors utilizing both stocks and exchange traded funds (ETFs) .

Bonds

The primary objectives of our fixed income investment process is to provide consistent income with a reduced level of asset volatility. Our secondary objective is to capture capital gains and improve total portfolio return.

To accomplish these objectives, we construct a typical fixed income portfolio around a foundation core of high quality corporate and/or municipal bonds. This foundation core provides a stable source of current income to the portfolio and assures a reduced level of asset volatility.

Fixed income is invested in accordance with our forecast for interest rates. We trend this balance toward the maximum maturity range when we are in a period of falling interest rates, and shorten to a minimum maturity range when interest rates are rising. No securities below investment grade ‘BBB’ or that mature beyond ten years are ever purchased. Municipal bonds are used only in taxable accounts.

Balanced

The main purpose in using a balanced investment philosophy is to reduce the risks inherent in equity investments and to provide investment growth opportunities missing in bond investments. The word “balanced” is a misnomer for it implies that assets are split equally between equities and bonds, when in fact assets are divided between equities, bonds, and a cash/money market equivalent. In order to achieve the investment objectives of a client, these three components must be actively managed and allocated properly based upon our expected rates of return of each over a specific time horizon.

Mutual Funds

Superior mutual fund investment returns result from a portfolio of careful selected, broadly diversified, no load, “Best of Breed” mutual funds of varying asset classes that are actively managed utilizing a long-term investment time horizon.  The mutual funds we select are carefully and continuously screened for overall performance and consistency of investment style. Investment manager stability and a minimum of a three year performance record are important considerations.

We allocate client’s assets based upon their risk tolerance and risk capacity, to create a comfort level of return. As market conditions change, the asset allocation is actively adjusted to maintain a client’s comfort level and to produce consistent investment returns.

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