Security Selection
Asset Allocation | Security Selection | Sell Discipline | Risk Control
Our security selection process is based on finding the appropriate securities in each asset class – stocks, bonds, money markets, commodities, REITs – to build a diversified portfolio tailored to each client’s need for growth, income, diversification, and risk management.
Our primary focus is to find quality companies, with favorable long term prospects, selling at low or moderate valuations. This perspective is applied to companies in all economic sectors, and numerous industry groups within these sectors, to develop a truly diversified portfolio of stocks. Our preference is to develop individual investment ideas, one at a time, rather than making big-picture, macro calls on the overall stock market or a narrow area of the market.
We employ a blended investment strategy emphasizing fundamental research and analysis, complemented by quantitative investment models and technical analysis. In addition to our company-focused research, we continually monitor trends in the US economy, the business sector and the financial markets.
In our fundamental research work, we analyze various aspects of a company’s financial condition and business prospects. Central to our style is a belief that companies with certain traits will generally outperform the broad stock market over a reasonable investment horizon. These traits include consistent or above average growth, market leadership, pricing power, varied sources of growth, stable or growing margins, free cash flow, share repurchases and balance sheet strength.
Favored Fundamental Attributes / Consistent or above average growth
- Market Leadership – # 1 or # 2 position
- Pricing Power
- Varied Sources of Growth
- Stable or Growing Margins
- Free Cash Flow
- Share Repurchases
- Balance Sheet Strength
