Equity Portfolios
Equity portfolios are constructed from the bottom up with stocks which
have above average return potential but may be out of favor at the time
of purchase. Portfolios are concentrated enough so that each investment
will have a material impact on performance, but are diversified enough
so that any missteps do not jeopardize long term performance. Our time
tested investment process combines fundamental security analysis with
valuation analysis to project a sell target beyond the point where noise
and volatility impact prices. Our analysis of normalized earnings power
gives us an advantage because most investors trade based on fairly short
term outlooks. With few preconceived ideas, we let the market tell us
what is expensive and what is cheap, and use our investment process to
counter any personal biases so that we may make objective investment decisions.
In order to reap the rewards of our in-depth analysis, we are patient
investors and our portfolios generally have low turnover. As Ben Graham
once said, “Value will out.”
Balanced Portfolios
Balanced portfolios are customized to the circumstances of the individual. Once a thorough understanding of a client’s situation has been established, funds are allocated amongst stocks, fixed income and cash assets. This mix should reflect the individual’s near-term liquidity needs, any ongoing cash flow requirements as well as one’s risk aversion. While the mix of assets varies for each individual, balanced portfolios generally share the objectives of capital preservation and long-term appreciation. Bonds tend to provide a stream of income and assist in dampening overall volatility.
