Our Strategies
We offer two distinct investment strategies to our clients: the Equity Strategy and the Preferred Strategy.
Equity Strategy
The investment goal of the Equity Strategy is long-term income and capital appreciation. The most important feature of the Equity Strategy is its reliance on regular dividend increases by the portfolio companies. Regular dividend increases combined with our reinvestment of dividends create the conditions for significant year over year income growth and the corresponding capital appreciation over time.
Client’s funds are invested in an actively managed, diversified portfolio of domestic and international stocks with the following characteristics:
- High profit margins
- Consistent, reliable profitability
- Leadership position in their respective industries
- Low risk of product or service obsolescence
- Low regulatory risk
- Low or moderate levels of debt
- A history of regular dividend increases
- A history of regular share buybacks
- Significant and realistic growth potential
- Honest, candid management
Preferred Strategy
The investment goal of the Preferred Strategy is capital preservation and respectable income opportunity. Client’s funds are invested in an actively managed, diversified portfolio of domestic and international preferred stocks and exchange-traded debt. The defining characteristics of this strategy are as follows:
- Portfolio securities pay respectable and reliable interest/dividend
- All securities are investment grade as rated by major rating agencies
- Whenever possible, securities are bought below par, providing a modest capital appreciation opportunity at redemption
- Lower volatility compared to the Equity Strategy