We believe that reaching your investment goals requires both a top-down and bottom-up approach together in developing your investment plan and in the implementation of the investment process. We combine our proprietary Value Discovery Process with our assessment of the current macro-economic expectations to create performance targeted portfolios.
When dealing with such important issues it is essential to have a plan. We listen and work with our clients to establish their goals, identify their risk tolerances and develop an overall portfolio diversification investment plan. If needed, we can also develop a more detailed plan using state of the art software to create a comprehensive plan using forecasting assumptions and modeling.
Target weightings of the industry sectors (health care, technology utilities, etc.) are then developed into allocations to build a portfolio diversification that aligns with a client’s investment plan. We believe diversification reduces a level of risk.
Those targets are also influenced anticipated macro-economic views, whether inflation is accelerating or decelerating and whether the rate of expected growth is accelerating or decelerating. Different industry sectors tend to do better or worse depending on the combination of those factors.
Our value-based approach then focuses on identifying companies that demonstrate the ability to generate positive cash flows and the ability to reinvest it for potential business growth. Next those companies are evaluated in our process to assess its intrinsic value, which is compared to its current market value to determine if there is a value gap and the potential for an attractive return.
We evaluate our client’s portfolios on an ongoing basis in relation to their investment plan, targeted diversification and our evaluation of each investment’s potential. Positions can be bought, sold, added to or reduced.