Investment Philosophy
We focus on long-term preservation and growth of capital through appropriate asset allocation. We typically pursue growth by investing in common stocks of companies that have demonstrated consistent earnings growth, and in most cases, consistent dividend growth as well. Continued growth in earnings should drive value over time. High-quality bond investments are made to provide stability and enhance income. Most important, investments need to be made at attractive prices and each investment needs to reflect a favorable risk/reward ratio.
Asset Allocation
We begin the investment process by developing a customized investment plan for each client. Each plan is reviewed on a regular basis and may change depending upon market conditions and changes in your personal circumstances. In determining the best asset allocation for each client, we consider the following:
- Your unique investment goals and objectives
- Investment time horizon
- Liquidity needs
- Risk Tolerance
- Income tax situation
- Specific investment constraints
Equity Management
We look to invest in strong businesses at a discount to their underlying fundamental values. We employ a highly disciplined process that is driven by bottom-up fundamental analysis. To manage risk, the portfolio is diversified across varied industries. Our core equity holdings generally reflect the following characteristics:
- Industry leader serving a growing market
- Demonstrated history of high-quality consistent earnings growth
- Excellent management team with a focus on building shareholder wealth over the long term
- High Return on Equity/Invested Capital
- A durable competitive advantage
- Operates in an industry with high barriers to entry
- Generates strong free cash flow
- Strong balance sheet
Fixed Income
We focus on high-quality tax exempt and taxable bonds, depending on the client's tax rate. We view the fixed-income portion of one's portfolio as adding overall stability and enhancing income. To manage risk, the portfolio is adequately diversified. Our fixed-income portfolios generally reflect the following characteristics:
- For tax-exempt bonds, we focus on general obligation and essential services municipal bonds
- For taxable bonds, we focus on high-quality corporate bonds, U.S. Treasuries, and U.S. Agencies
- A duration and maturity structure that protects against interest-rate risk, matches liquidity needs, and reflects our current assessment of the fixed-income markets