INVESTMENT STRATEGY

We offer portfolios tailored to an individual’s needs and goals. Depending on an investor’s risk profile and time horizon, portfolio accounts will range from an all equity asset allocation to a customized mix of equity and fixed income securities. Styles offered are highly diversified.

Our overall objective is growth with reasonable risk, consistent with asset allocation levels. We analyze and select top quality, high strength common stocks and, if applicable, investment grade fixed income securities to achieve that goal.

We believe there are periods to be fully invested in the market and periods to be less invested, with the aim of protecting principal during turbulent markets. We pay close attention to market conditions as identified by our INSTITECH 4000 Index and specialized process.
 
Portfolios tend to be fully invested during Bullish or up trending markets. During Bearish or Neutral market conditions an increased defensive posture is maintained reducing market exposure with varying levels of money market funds (cash).
 
Depending on market conditions, we will use different combinations of asset classes: common stocks, exchange traded funds (ETF), investment grade bonds or bond funds and cash money market funds.
 
We employ our proprietary INSTITECH 4000 process regarding common stock selection for, or the elimination from, portfolios.

 

Specific strategy considerations:

  • We favor highly ranked, or rising, individual growth stocks as identified within the INSTITECH 4000 universe of approximately 4000 stocks.

  • Highly ranked, or rising industries are targeted.

  • Stock position sizes are typically purchased on an equal weighted basis.

  • High diversification is maintained by owning stocks across multiple industries, ranging from 25 to 35 or more, unique industries.

  • Concentration of stocks, within any one industry, will be capped.

  • All stocks must stand on their own merits, regardless of market conditions. We buy and hold stocks for as long as they perform within our pre-established guardrails.

 

​​Guardrails: Think of our common stock guardrails as the safety barriers typically used at dangerous points on roads and bridges. Their purpose is to simply keep your car from going over the edge and to stay on the road. Your "portfolio car" may get a little dented if it hits the guardrail but will stay on course because of that safety barrier.

  • Guardrails help safeguard your investments. When indicators suggest that guardrails for individual stocks will be breached, the stocks will be sold.

  • During Bullish market conditions portfolios tend to be fully invested. When stocks are sold during Bullish periods they are typically replaced with new, highly ranked stocks, maintaining full investment.

  • During Bearish or Neutral conditions and when stocks breach established guardrails, they are sold. While in this market condition, proceeds from stock sales will be placed into cash/money market funds until market conditions improve.