Core Strategy FACTSHEET

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The Core Strategy is best suited for clients who seek price appreciation as a significant component of portfolio total return, have a long-term investment orientation, and look for less downside portfolio risk.

  • Our primary investment objective is to construct a portfolio that will generate competitive returns versus the major market indices over a business cycle while assuming significantly less downside risk. We view capital preservation during difficult market periods as critical to the achievement of this goal.
  • Our investment philosophy stresses the benefits of a diversified portfolio of high-quality companies with a proven track record of long-term earnings and dividend growth.
  • We subscribe to the notion of reversion to the mean: the idea that asset prices tend to move in wide swings above and below their fair value, but eventually move back toward their historical norms.

Investment Selection

The Core Strategy invests in the common stocks of primarily domestic mid cap, large cap, and mega cap companies that we believe are trading below their intrinsic value.

Investment ideas are generated from a variety of sources, including:

  • Quantitative stock screening;
  • Stocks that have recently suffered significant share price declines;
  • Investment news;
  • Investment industry publications and newsletters.

For new ideas worthy of further investigation, we will compare the stock’s current valuation metrics against the historical averages, review the company’s financial statements for the past several years for material information that may bear upon its future prospects, review company conference calls, participate in conference calls with analysts to gain industry insight, and meet with management teams to get a better understanding of general business fundamentals.

We typically avoid companies that:

  • Involve products or business models we do not like or understand;
  • Are heavily leveraged or in financial distress;
  • Have a history of treating outside shareholders poorly;
  • Have a recent history of accounting problems or regulatory scrutiny.

"We are seasoned investment advisors who know how to analyze companies and build a portfolio and an investment plan for clients. Customization is more than just a word to us. We purchase individual securities based on what will best fit our client’s growth, income and tax needs."

— Jennifer Byrne, Portfolio Manager

Portfolio Construction

The portfolio typically holds between 30 and 50 stocks, although holdings may be above or below this range if conditions warrant. Most holdings fall within a 2% to 5% range of the equity allocation. Further, we are generally fully invested, with a cash position usually ranging from 3% to 5%, subject to client and market circumstances.

Annualized turnover typically ranges between 15% and 20%.

We employ a bottom-up stock picking approach, where consideration is given to achieving a prudent level of portfolio diversification across industry groups, economic sectors, and market capitalizations. Portfolios are constructed with the goal of being less volatile than the broader equity market over time.

Sell Discipline

We will reduce a stock position or sell it entirely if:

  • Our original basis for the investment has changed;
  • The stock is selling at an unwarranted premium to our estimate of fair value;
  • We have lost confidence in management;
  • A superior investment alternative becomes available.