Equities

In selecting equities for our clients’ portfolios, we focus on two critical elements: a company’s financial health and its valuation. We look for high-quality companies with proven business models, sound balance sheets, and dominance in their markets.

We use those same valuation disciplines to decide whether and when to sell equities in the portfolio. We consider

• sector diversification, market capitalization, liquidity, and price/earnings ratios

• cultural changes, which provide some of our best ideas

• demographic and economic trends we expect investors to favor

• sectors or types of equities where the market’s perception is likely to change

Fixed Income

For each client, we set parameters for diversification, duration, quality, and maturity based on our expectations of shifts in the yield curve and changes in spread levels. We perform total return analysis, then select individual securities such as government bonds, asset-backed securities, mortgage-backed securities, investment grade corporate bonds, high-yield, and municipal bonds when appropriate. 

We take an active approach to investing. Our primary strategies include

• shortening maturities when we expect rates to rise or, conversely, lengthening when rates are likely to fall

• selecting securities whose yields-to-maturity are attractive relative to benchmark holdings with similar maturities

• evaluating structural features which may offer additional total return potential

• taking advantage of opportunities to purchase securities that are candidates for rating upgrades