We use sound, fundamental analysis to identify undervalued securities that we believe offer superior total return potential with below average risk. Our value-oriented approach means that we invest in companies where the underlying earnings power, cash flow characteristics, corporate assets, or restructuring potential of the firm are not understood well — and therefore not valued properly — by other investors. We believe successful investment ideas are a function of creative and independent research, two factors we strongly emphasize in our investment process.

Our equity strategy is centered on being price sensitive. We will not pay a high price for a stock because it appears to be a “good story,” ignoring the underlying valuation metrics. Our goal is to not only understand key industry and company-specific fundamental issues, but also ensure that the stocks we purchase meet our strict valuation screens. 

Maintaining a long-term perspective is an important part of our equity philosophy. A focus on short-term performance can result in excessive trading, unnecessary portfolio turnover, and below average returns. Studies have shown that trying to “time the market” can be extremely unproductive and costly. The stock market is inherently volatile over the short term. Using a longer-term time horizon allows us to instill consistency and discipline into the investment decision-making process, which is intended to benefit our clients through improved portfolio performance and reduced volatility.

We offer three equity investment strategies: Core, Core Plus, and Select Equity.  Ideally, after thorough discussion, each investor can choose which strategy -- or strategies -- best fits their investment risk and return profile.  Our Core strategy has a large-cap focus with an emphasis on dividend yield.  Our Core Plus strategy takes a multi-cap approach and has a somewhat more aggressive risk profile than our Core strategy.  Our Select Equity strategy emphasizes small and mid-cap stocks.

Risk control is a dominant goal in our fixed income investment philosophy. Bond portfolios are constructed with a staggered maturity schedule to better control risk and provide a balanced income stream. By integrating our economic outlook with assumptions about the movement of interest rates, we adjust the maturity structure to achieve our goal of incremental returns. Typically, a fixed income benchmark is established, which best reflects an investor’s risk profile. Once established, we utilize a “limited interest rate anticipation” strategy in an effort to avoid dramatic changes in bond portfolio structure relative to the benchmark.

In addition to our interest rate anticipation strategy, we seek to exploit pricing discrepancies among the various sectors of the fixed income markets. Excessive yield differentials are detected through both maturity and sector spread analysis. Yield spreads generally reflect consensus assumptions about the economy and interest rate movements. In those periods where our economic outlook differs from consensus opinion, we will shift our fixed income portfolios to take advantage of excess return opportunities.